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Los Angeles real estate market continues to show gains

27 Jun 2013 10:40 AM
Los Angeles real estate market continues to show gains

As the national economy continues to strengthen and real estate markets across the U.S. show repeated signs of substantial improvement, evidence of such growth is being seen in California.

Los Angeles, the Golden State's largest city, has been the center of many positive housing developments in recent months, and can afford a number of attractive opportunities to those seeking luxury homes. According to the latest S&P/Case-Shiller Home Price Indices released by S&P Dow Jones Indices, values of residential properties in the City of Angels appreciated on both monthly and yearly bases during April. 

The organization reported that homes in the upscale metropolitan area recently increased by 3.4 percent from March, and 18.8 percent from the amounts recorded during April 2012. This was the largest gain seen in the Los Angeles real estate market since 2004, and topped the average figure for growth seen nationwide. The index's 10- and 20-City Composites both ticked up month-over-month and year-over-year, but at lesser rates. The 10-City Composite improved by 2.6 percent from March and 11.6 percent from year-ago readings, while the 20-City Composite hiked 2.5 percent from the preceding month and 12.1 percent from April 2012.

David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices said these figures can be used to confirm the ongoing progress of the national housing market's widespread recovery and possibly point toward future improvement.

"The 10- and 20-City Composites posted their highest monthly gains in the history of S&P/Case-Shiller Home Price Indices," said Blitzer. "Thirteen cities posted monthly increases of over two percentage points. The recovery is definitely broad based. The two Composites showed the largest year-over-year gains in seven years. Recent economic data on home sales and inventories confirm the housing recovery's strength."

Sales of new-homes on the rise in May
Not only have Los Angeles home prices increased, but the construction of new residential housing has, as well.

A joint release from the U.S. Census Bureau and the Department of Housing and Urban Development detailed a significant increase in the sales of recently-built single-family houses last month. Transaction numbers were recorded at a seasonally adjusted annual rate of 476,000, which represent a 2.1 percent rise from the amount logged in April, and a 29 percent jump from May 2012 figures.