Posted on 11/21/2025 10:40:14 PM PST by Angelino97
Good news for Southern California house hunters: estimated values of three-quarters of local homes have fallen in the past year...
Most widespread drop was in Los Angeles and Orange counties, where 79% of homes experienced a value decline. That’s the 14th-highest among the 50 metros tracked.
Average decline in L.A.-Orange County from recent high valuations was 7.5%, ranking the region No. 29 nationally. However, lower prices don’t always translate into more affordable options for house buyers.
L.A.-Orange County owners are slow to sell, with median ownership at 12 years (the second-longest nationally). Despite recent dips, the median home remains valued 85% above its last purchase price (the sixth-highest).
In San Diego County values are down for 78% of homes (No. 17) with an 8.2% average decline from their peak (No. 22). Median ownership runs 11 years (No. 4) with an 88% gain above the purchase price (No. 5).
In the Inland Empire, 74% of homes have lost value (No. 19), with a 6.5% average decline from peak (No. 37). The median ownership period is 10 years (No. 10), resulting in an 80% gain above the purchase price (No. 13).
...price drops are more common – and steeper – in Northern California …
Sacramento: 88% of homes lost value (No. 3 nationally) with an 8.7% average decline from peak (No. 19). Median ownership of 10 years (No. 16) with a 60% gain above purchase price (No. 35).
San Francisco: 83% lost value (No. 9) with a 14.8% average decline from peak (No. 3). Median ownership of 12 years (No. 2) with a 65% gain above purchase price (No. 30).
San Jose: 78% lost value (No. 16) with a 10.3% average decline from peak (No. 13). Median ownership of 13 years (No. 1) with a 97% gain above purchase price (No. 2).
(Excerpt) Read more at dailynews.com ...
More affordable.
so many people refinanced during covid to get the sweetheart interest rates and no one is letting go of those.
At least it doesn’t sound like the rest of the country is going to be forced to bail out California banks for underwater mortgage loans.
since real estate wasn’t selling here in L A with sky-high prices and high mortgage rates, this had to be and will probably be stimulative.if prices are at their clearing price.
Prices are declining because the state is becoming a less desirable place to live.
Trump’s deportation of illegals is reducing demand for housing
Change the headline from “home values” to “housing prices,” and it’s a totally different vibe.
Bet property taxes haven’t.
Not in a property tax state.
Your property taxes don’t go up because your current market price falls. Current market price only matters if you’re trying to sell, and if you sell your house, then you no longer have to pay the property tax on it: the new owner pays.
In my neck of the woods people can’t sell homes thanks to confiscatory property taxes.
Even buyers who can afford the mortgage don’t want to risk having to sell at at a loss because of the property tax burden.
Here’s a question...
Are assessments falling?
Cuz I’m betting they haven’t...
Consumer Spending and Property Taxes
...A tax hike on the main dwelling leads to large expenditure cuts among mortgagors, who hold low liquid wealth despite owning sizable illiquid assets. In contrast, higher tax rates on other residential properties affect affluent households, thereby having a modest impact on their consumer spending...
Southern California, thanks to long-ago Proposition 13, does not have similar property tax issues.
My neighborhood here in SoCal seems to be holding steady.
I’m too lazy this morning to figure it out, but 15% equity in 12 years sounds like being underwater on a 30 year mortgage.
Considering 2-3% closing costs and 6% realtor fees, selling doesn’t look lucrative.
EC
Florida home prices are in decline too, especially the west coast.
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