LA/OC Home Prices on the Rise...

Home prices in the Los Angeles/Orange County area jumped 21.7% year-over-year in August, the biggest percentage increase since December.

The Los Angeles/Orange County housing markets saw the third biggest home-price increase among the 20 leading U.S. metro areas in the latest S&P/Case-Shiller Home Price Index. Nationally, Case-Shiller reported that August prices were up 12.8% in the housing index since August 2012, the highest annual increase since February 2006.

But the soaring price gains from earlier this year have cooled as more homes hit the market, easing bidding wars. Prices peaked in April, the report shows. “Since then home prices continued to rise, but at a slower pace each month,” said David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices.

He said 16 of the 20 cities reported smaller gains in August than in July. Blitzer cited recent increases in mortgage rates and fewer loan applications. The L.A.-O.C. area saw a 2% month-to-month increase in August, compared to 2.1% in July. The largest month-to-month jump was in April, at 3.4%.

An area of grave concern is still the Home Affordability Index which shows Orange County at 24%, down from 44% one year ago. The results are similar in Los Angeles with affordability now at 24%, down from 39% just one year ago…