Orange County home prices ended 2014 up 3.8 percent, the smallest annual appreciation rate in three years due in part to a decline in investor speculation.
The CoreLogic Home Price Index, which measures sale price changes in more than 900 U.S. metro areas, showed also that Orange County’s home price gain in December was the smallest for any month since September 2012.
Housing’s appreciation rate here — which peaked at 23 percent in the summer of 2013 — decreased steadily for 16 straight months as investor activity and all-cash deals fell and home buyers either were unwilling or unable to buy after a huge run-up in prices in 2013
Nineteen percent of all Orange County homes sold in 2014 were to “absentee buyers,” according to CoreLogic DataQuick, down from 27 percent two winters ago. Cash sales — that is, deals without a mortgage — fell to 26 percent of December’s sales, down from 34 percent two winters ago.
On the other hand, 2014 was the third straight year showing home price gains following six years of falling prices.
CoreLogic bases its index on comparisons between sale prices of single-family homes with prior sales of those same homes.
Nationwide, home prices ended 2014 up 5 percent, CoreLogic reported. Prices remained 13.4 percent below the peak of the housing bubble in April 2006.
Prices increased in 47 states, falling in just three: Maryland, Vermont and Connecticut. The biggest gains were in Colorado (up 8.4 percent), Texas (up 7.8 percent) and New York (up 7.6 percent).
Los Angeles County and the Inland Empire were tied for third-highest appreciation rate among large U.S. metro areas, with home prices up 6.5 percent.
Home prices were up 7 percent in California as a whole, the seventh-highest gain among states.
Here are excerpts from the nation’s press:
The Associated Press: “U.S. home values rose at a modest pace in December, a sign there are too few potential buyers to bid up prices.
“Real estate data provider CoreLogic says home prices rose 5 percent in December from 12 months earlier. That is down from the 5.5 percent price gain recorded in November. It’s much lower than the double-digit gains that occurred last year. …
“Still, other recent data on housing suggests that sales and construction are on the upswing. … Many economists forecast sales will rise to about 5.2 million this year.”
National Mortgage News: “The Irvine, Calif.-based analytic provider’s home price index revealed that 27 states are at or within 10 percent of their peak. … CoreLogic is forecasting that home prices will be flat from December to January. But for the full year of 2015, home values are projected to appreciate 4.8 percent.”
