The gain in home prices has been widespread, with prices up on an annual basis in all 20 metropolitan areas surveyed. However, the improvement has been particularly notable in certain markets, which have disproportionately pulled up the national composite. The areas with the fastest home price appreciation have generally been those that have attracted the greatest amount of investor buying. As investor demand wanes in these markets, home price appreciation slows.
The trend in home prices in California is particularly important when gauging the risks to national home prices.