The Case-Shiller Index is confirming property value appreciation has slowed substantially in Los Angeles from it’s heated market over the past few years. The foreign investors and hedge funds driving the market higher has generally pulled back from their buying mode, leaving the buying up to the general population.
The Case-Shiller is a laggard index, meaning by the time it’s data hits the media, it’s obsolete information. It’s best to look at local inventory numbers and pending sales data. It will give a more accurate current and future indication of the direction of the real estate market and pricing.
The media often conveys year over year pricing numbers, but in really, pricing direction can change substantially for months before it’s reflected in the annual numbers. Shiller’s 9% annual appreciation would be an erroneous number to use if trying to determine a future sales price for a property.
If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me.
Ron Henderson GRI, RECS, CIAS
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth