Home prices across the country have been going up over the past year, including in Los Angeles, but there are signs of a slowdown.
In LA, there was a 22% increase in prices from February 2021 to February 2022, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index. Just between January and February of this year, LA saw a 3.2% increase in home prices.
The index showed home prices increased 19.8% nationally during the February 2021-February 2022 period, up from a 19.1% annual increase in January.
As inflation began to cause interest rates to go up, the prices of homes also went up.
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The largest increases were seen in Sun Belt cities, including Phoenix (32.9%), Tampa (32.6%) and Miami (29.7%).
The smallest gains? Those were in Minneapolis, New York and Washington, D.C.
Experts say those prices could be going down as the economy begins to re-balance in a post-pandemic way.
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“The macroeconomic environment is evolving rapidly and may not support extraordinary home price growth for much longer,” wrote Craig Lazzara, managing director at S&P DJI, in a news release. “The post-Covid resumption of general economic activity has stoked inflation, and the Federal Reserve has begun to increase interest rates in response. We may soon begin to see the impact of increasing mortgage rates on home prices.”
