Prices for Inland Empire starter homes dipped for the first time in 17 months as appreciation grew frosty in many parts of the California housing market.

My trusty spreadsheet reviewed the October home-price report by First American Data & Analytics that covers 30 U.S. metro areas, including six in California. This study’s quirk is slicing markets into three price groupings — high-priced luxury houses, more-affordable starter homes, and midpriced residences. The overall price swings of these 30 metros were also tracked.

Top line

Prices for starter homes in Riverside and San Bernardino counties slipped 0.7% in the 12 months that ended in October, the third-biggest dip among the 30 metros.

The last 12-month decline was in March 2023. This latest dip compares to a gain of 2.4% in the 12 months.

The Inland Empire cooldown extended to luxury home values, too, which were up 3.6% this last year (No. 13), compared with 5.4% gains the previous year.

Overall, inland prices were up 0.9% (No. 21), versus 3.4% increases the previous year.

Weaker appreciation isn’t just an Inland Empire thing.

For example, prices for Orange County starter homes rose 5.4% in the past year (No. 8 of the 30) — but that’s down from a 7.1% jump in the previous year.

Or contemplate Orange County’s luxury housing, which saw values rise 8.2% in the past year, the largest gain among the 30 meters tracked. But that high-end appreciation was 10% in the prior 12-month period.

Orange County’s overall prices are up 7% over 12 months (also No. 1) — but still slower than the 8.9% gains in the previous year.

Bottom line

Buying a home is totally unaffordable by every measurement. Stubbornly high prices plus doggedly lofty mortgage rates are a house hunter’s nightmare.

As a result, sales transactions have slumped near historic lows.

So ponder four other Golden State markets, ranked by their starter-home price changes, to see a glimmer of hope for wannabe owners: slowing appreciation…

San Diego County: Starter homes up 2.2% (No. 17) versus 6.6% previous year. Luxury’s up 3% (No. 16) versus 8.5% previous year. Overall, up 2.4% (No. 16) versus 7.8% previous year.

Sacramento: Starter homes up 1.5% (No. 19) vs. 2.1% previous year. Luxury’s up 3.9% in last year (No. 10 of the 30) versus 2.5% previous year. Overall, up 3.1% (No. 12) versus 1.2% previous year.

Los Angeles County: Starter homes up 1.2% (No. 20) versus 6.5% previous year. Luxury’s up 1.2% (No. 27) versus 4.4% previous year. Overall, up 0.6% (No. 22) versus 5.7% previous year.

Alameda and Contra Costa counties: Starter homes off 0.6% (No. 26) versus 6.4% gain previous year. Luxury’s up 1.3% (No. 26) versus 1.6% previous year. Overall, off 1.2% (No. 29) versus 4.1% gain previous year.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com.