- California home growth has finally started to show signs of slowing down.
- Markets like Detroit, Pittsburgh and Las Vegas are beginning to improve significantly.
- San Jose is the only California metro that ranks in the top 10 for appreciation spanning the second and third quarters.
For nearly four years, price appreciation in California metros has kept the West afloat and led the nation in growth.
But moving forward, these markets can not be trusted to pull the same weight; data suggest cooling appreciation across the state.
Since the first quarter of 2015, five major California MSAs — San Jose, Sacramento, Los Angeles, Riverside-San Bernardino and San Francisco — have observed home price depreciation on a quarter-over-quarter basis, according to a market report from Clear Capital.
San Jose is the only California metro that ranks in the top 10 for appreciation spanning the second and third quarters. San Jose’s quarterly growth of 2.5 percent still led all major metros.
Other top-performing metros during the third quarter included Detroit (2.1 percent), Las Vegas (2 percent), Atlanta (1.8 percent) and Miami (1.8 percent).
Denver, Orlando and Jacksonville all saw 1.7 percent quarter-over-quarter appreciation. Portland, Dallas, Seattle, Charlotte, San Francisco, Sacramento and Tampa witnessed between 1.4 percent and 1.6 percent gains in home prices.
On a year-over-year basis, San Jose (9.4 percent appreciation) and San Francisco (8.8 percent) represent the only California markets to crack the top 10. Others in the top bracket included a few surprises:
- Detroit – 12.5 percent
- Denver – 12 percent
- Pittsburgh – 11.5 percent
- Seattle – 10.6 percent
- Miami – 10.1 percent
- Dallas – 10 percent
- Atlanta – 9.1 percent
Spanning the second to third quarters, Providence and Baltimore both experienced depreciation of 0.8 percent and 0.2 percent, respectively. These two markets also represent the worst-performing metros on a year-over-year basis, having experienced home prices declines of 6.2 percent and 2.3 percent.
Aside from these two locales, Washington D.C.; Rochester, New York; and Dayton, Ohio account for other poorly performing metros.