Los Angeles-Long Beach-Glendale Home Prices Up 5.2% Year Over Year, According to First American Data & Analytics Monthly Home Price Index Report

Rhea-AI Summary

First American Data & Analytics, a division of First American Financial Corporation (NYSE: FAF), released its November 2023 Home Price Index (HPI) report. Nationally, house prices increased by 0.3% between October and November 2023 and 7.6% year-over-year. The Los Angeles-Long Beach-Glendale CBSA saw a 5.2% increase in home prices compared to a year ago. Starter home prices grew the fastest, indicating high demand from first-time buyers.

Positive

• House prices reached a new peak for the eighth month in a row in November 2023.
• Starter home prices grew the fastest in many markets, reflecting high demand from first-time buyers.
• The five most populous states experienced positive year-over-year growth in the HPI, with Pennsylvania leading at 8.7%.

Negative

• None.

—Homeowning ‘Grinches’ Hoarding Housing Supply from Willing Holiday Buyers—

—Starter Home Price Appreciation Remains Robust in Most Markets—

SANTA ANA, Calif.--(BUSINESS WIRE)--

First American Data & Analytics, a leading national provider of property-centric information, risk management and valuation solutions and a division of First American Financial Corporation (NYSE: FAF), today released its November 2023 Home Price Index (HPI) report. The report tracks home price changes less than four weeks behind real time at the national, state and metropolitan (Core-Based Statistical Area) levels and includes metropolitan price tiers that segment sale transactions into starter, mid and luxury tiers. The full report can be found here.

Los Angeles-Long Beach-Glendale HPI

In the Los Angeles-Long Beach-Glendale CBSA, home prices increased by 5.2 percent in November compared with a year ago and decreased by 0.3 compared with October 2023. See below for price-tier data.

November 2023 National HPI Highlights

The First American Data & Analytics’ non-seasonally adjusted (NSA) HPI showed that nationally in November¹ 2023:

• Between October 2023 and November 2023 house prices increased 0.3 percent.
• House prices increased 7.6 percent between November 2022 and November 2023.
• House prices reached a new peak for the eighth month in a row in November 2023.
• House price growth reported in last month’s HPI for September 2023 to October 2023 was revised down 0.3 percentage points, from 0.4 percent to 0.1 percent.

“The October spike in mortgage rates thankfully retreated in November, providing an affordability boost to prospective buyers and fueling home price appreciation. Preliminary November results indicate that home prices increased for the eighth consecutive month,” said Mark Fleming, chief economist at First American. “This holiday season, homeowners are the ‘grinches,’ hoarding housing supply from willing buyers and keeping upward pressure on prices. However, the new year offers hope to discouraged buyers as sellers’ anchor bias to historically low mortgage rates fades and the potential for slightly lower mortgage rates further improves affordability.”

Year-Over-Year Price-Tier Data for the Los Angeles-Long Beach-Glendale Metro Area:

November 2022 to November 2023

The First American Data & Analytics HPI segments home price changes at the metropolitan level into three price tiers based on local market sales data: starter tier, which represents home sales prices at the bottom third of the market price distribution; mid-tier, which represents home sales prices in the middle third of the market price distribution; and the luxury tier, which represents home sales prices in the top third of the market price distribution.

CBSA	Starter	Mid-Tier	Luxury
Los Angeles-Long Beach-Glendale	4.0%	8.5%	5.7%

“Unsurprisingly, starter home prices grew the fastest in many markets. Would be first-time buyers hoping to become homeowners usually do so with a lower-priced starter home," said Fleming. “While the homeownership rate for millennials recently surpassed 50 percent, there are still a lot of potential buyers bidding against each other for the rare starter home that comes to market."

November 2023 House Price State² Highlights

• The five most populous states experienced the following year-over-year growth in the HPI: Pennsylvania (+8.7 percent), Florida (+5.5 percent), California (+4.5 percent), Texas (+4.3 percent), and New York (+2.2 percent).
• There were no states with a year-over-year decrease in the HPI.
• Full 50-state HPI data is available here.

Visit the First American Economic Center for more research on housing market dynamics.

Next Release

The next release of the First American Data & Analytics House Price Index will take place the week of January 16, 2024.

First American Data & Analytics HPI Methodology

The First American Data & Analytics HPI report measures single-family home prices, including distressed sales, with indices updated monthly beginning in 1980 through the month of the current report. HPI data is provided at the national, state and CBSA levels and includes preliminary index estimates for the month prior to the report (i.e. the preliminary result of July transactions is reported in August). The most recent index results are subject to revision as data from more transactions become available.

The HPI uses a repeat-sales methodology, which measures prices changes for the same property over time using more than 46 million paired transactions to generate the indices. In non-disclosure states, the HPI utilizes a combination of public sales records, MLS sold and active listings, and appraisal data to estimate house prices. This comprehensive approach is particularly effective in areas where there is limited availability of accurate sale prices, such as non-disclosure states. Property type, price and location data are used to create more refined market segment indices. Real Estate-Owned transactions are not included.

Disclaimer

Opinions, estimates, forecasts and other views contained in this page are those of First American’s Chief Economist, do not necessarily represent the views of First American or its management, should not be construed as indicating First American’s business prospects or expected results, and are subject to change without notice. Although the First American Economics team attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. © 2023 by First American. Information from this page may be used with proper attribution.

About First American Data & Analytics

First American Data & Analytics, a division of First American Financial Corporation, is a national provider of property-centric information, risk management and valuation solutions. First American maintains and curates the industry’s largest property and ownership dataset that includes more than 8 billion document images. Its major platforms and products include: DataTree^®, FraudGuard^®, RegsData^®, First American TaxSource™ and ACI^®. Find out more about how First American Data & Analytics powers the real estate, mortgage and title settlement services industries with advanced decisioning solutions at www.FirstAmDNA.com.

About First American

First American Financial Corporation (NYSE: FAF) is a premier provider of title, settlement and risk solutions for real estate transactions. With its combination of financial strength and stability built over more than 130 years, innovative proprietary technologies, and unmatched data assets, the company is leading the digital transformation of its industry. First American also provides data products to the title industry and other third parties; valuation products and services; mortgage subservicing; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $7.6 billion in 2022, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2023, First American was named one of the 100 Best Companies to Work For by Great Place to Work^® and Fortune Magazine for the eighth consecutive year and was named one of the 100 Best Workplaces for Innovators by Fast Company. More information about the company can be found at www.firstam.com.

¹ The most recent index results are subject to revision as data from more transactions become available.

² The HPI for non-disclosure states and markets that fall within non-disclosures states are not included in this month’s HPI report.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231212196441/en/

Media Contact:

Marcus Ginnaty

Corporate Communications

First American Financial Corporation

(714) 250-3298

Investor Contact:

Craig Barberio

Investor Relations

First American Financial Corporation

(714) 250-5214

Source: First American Data & Analytics

FAQ

What is the November 2023 Home Price Index (HPI) report by First American Data & Analytics?

The November 2023 HPI report tracks home price changes nationally, at the state, and metropolitan levels, including price tiers for starter, mid, and luxury homes.

What were the national highlights of the November 2023 HPI report?

House prices increased by 0.3% between October and November 2023 and 7.6% year-over-year.

What were the highlights for the Los Angeles-Long Beach-Glendale CBSA in the November 2023 HPI report?

Home prices in the CBSA increased by 5.2% compared to a year ago.

What is the significance of starter home prices in the November 2023 HPI report?

Starter home prices grew the fastest in many markets, indicating high demand from first-time buyers.

Which states experienced notable year-over-year growth in the HPI according to the November 2023 report?

Pennsylvania led with 8.7% growth, followed by Florida, California, Texas, and New York.

What is the next release date for the First American Data & Analytics House Price Index?

The next release will take place the week of January 16, 2024.