Recent data reveals that home values have dropped in three-quarters of homes across Southern California, providing a potential opportunity for house hunters in the region. A report from Zillow analyzed home values in 50 major metropolitan areas, highlighting significant declines in several Southern California locales over the past year, ending in October.
In the Los Angeles and Orange counties, a staggering 79% of homes experienced a decline in value, making it the 14th-highest drop among the metropolitan areas surveyed. The average decrease in this region was 7.5% from recent peak valuations, ranking it No. 29 nationally. Despite these drops, the median home price remains 85% higher than the last purchase price, indicating that affordability remains a challenge for potential buyers.
The trend continues in San Diego County, where 78% of homes saw a decrease in value, placing it No. 17 nationally. Here, the average decline from peak prices reached 8.2% and ranked No. 22. Homeowners in San Diego have a median ownership duration of 11 years, with home values 88% above their previous purchase prices.
In the Inland Empire, 74% of homes lost value, with an average decline of 6.5% from peak prices, ranking it No. 19. The median ownership period in this area stands at 10 years, resulting in an 80% gain over the original purchase price.
Notably, price drops are more pronounced in Northern California. In Sacramento, 88% of homes lost value, the third-highest rate nationally, with an average decline of 8.7%. Homeowners in Sacramento have a median ownership of 10 years, with a 60% gain above their purchase price. San Francisco follows closely, with 83% of homes experiencing value loss and an average decline of 14.8%, the third-highest average decline.
Nationally, home values show a similar trend, with 53% of homes experiencing a decline, averaging 9.7% from their peak prices. The median ownership across the country is 9 years, with an average gain of 67% over purchase prices.
As the housing market navigates these shifts, homebuyers may find opportunities amidst the declining values. Despite the drops, many regions still see significant appreciation relative to previous purchase prices, indicating a complex landscape for both buyers and sellers.
For more insights on the housing market in Southern California, readers can refer to business columnist Jonathan Lansner of the Southern California News Group. He can be reached at [email protected].
