Wrapping the Week: Home Sales in the Former Hot Pockets are Not So Hot Anymore

With real estate agents and economists citing rising prices and the jump in mortgage rates,the Wall Street Journal today reports that some of the nation's hot housing markets are cooling off, and maybe going cold.

The article says that for the 12-month period ending in September, "values have climbed by more than 33% in Las Vegas and Sacramento, Calif., and by more than 20% in San Francisco, Phoenix, San Diego, and Orange County, Calif."

Not bad, but the numbers, which come from website Zillow Inc.,"have moderated. For the July-to-September quarter, home values in Orange County rose just 1%; in San Diego, 2%; and in San Francisco, 3%."

The increases in those formerly red-hot housing markets were the smallest they have seen since prices began to rise early last year.

The rising prices have made home less affordable, and the article notes that investors appear to be losing interest after scarfing up foreclosures and distressed homes since 2011. Buyers markets are evolving, even as other parts of the country have low inventory, which pushes prices up.

The article, with charts, can be found here.

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