Data released by S&P Case-Shiller indices indicate that in the Los Angeles area, prices are still on the rise.
Increases for Los Angeles are 2.58% which is somewhat higher than the 20-city or 10-city national composite of 2.45% and 2.48%, respectively.
Interestingly enough, there are two opposing pressures on the housing market:
- The rise in interest on mortgages puts downward pressure on buyers. Their buying power decreases as the interest rate goes up.
- The decrease in defaults and foreclosures means a decreasing inventory of property on the market, exerting an upward pressure on housing prices.
The Case-Shiller index measures prices across the nation in 20 cities. The trends across the country are showing different results. Many cities, like Los Angeles, that were hardest hit with the price decreases in the downturn, show the fastest price growth.