California markets stay strong amidst price declines

Though the local housing market has had its struggles, experts say that homes in California are maintaining yearly price gains, a good sign for those selling their homes and moving.

Clear Capital's latest survey showed that home prices in many of California's major cities rose over the past year, a positive indication that the local real estate market is on the rebound. The Riverside metropolitan area led the way, posting a 9.5 percent year-over-year increase, followed by San Jose, where prices are up 8.8 percent from a year ago. San Francisco enjoyed gains of 8.4 percent, while Los Angeles home prices grew 7.4 percent. Steady moving activity may have also helped lead to a 6.8 percent yearly rise in San Diego, and the capital city of Sacramento experienced a 3.8 percent year-over-year gain.

"All six major metropolitan areas in California are out-performing both national and West region numbers in terms of yearly gains," said Dr Alex Villacorta, Clear Capital's senior statistician. "While national home price trends gauge overall home price movement, regional, metro and local housing markets will continue to respond differently to distressed inventories and national policy."

Rising year-over-year home prices may have come as California comes out from under its large foreclosure inventory. RealtyTrac reported that 66,475 properties received a foreclosure filing in October, down 12 percent from the previous month and 22 percent from a year earlier.
 

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