Buildings in downtown Los Angeles stand in the distance as construction continues at a home being built by Nile Niami, a film producer and speculative residential developer, in this aerial photograph taken in Bel Air, California, U.S., on Monday, May 18, 2015. Niami, who hopes to sell the house for a record $500 million, is pouring concrete in L.A.ís Bel Air neighborhood for a compound with a 74,000-square-foot (6,900-square-meter) main residence and three smaller homes, according to city records. Photographer: David Paul Morris/Bloomberg
David Paul Morris Buildings in downtown Los Angeles stand in the distance as construction continues at a home being built by Nile Niami, a film producer and speculative residential developer, in this aerial photograph taken in Bel Air, California, U.S., on Monday, May 18, 2015. Niami, who hopes to sell the house for a record $500 million, is pouring concrete in L.A.ís Bel Air neighborhood for a compound with a 74,000-square-foot (6,900-square-meter) main residence and three smaller homes, according to city records. Photographer: David Paul Morris/Bloomberg

From Bloomberg.com, an analysis of how home buyers are losing interest in paying premium prices in the West.

Denver, Los Angeles and Austin, Texas, have seen gains in real estate values moderate after years of double-digit increases, according to Zillow. A slowdown in the tech epicenter of San Francisco is becoming even more pronounced, with the median home value in August rising less than 1 percent from a year earlier.

The five-year surge in real estate demand across the West is starting to take its toll in some areas as buyers become more reluctant to purchase a home that would eat up a large chunk of their monthly earnings. With job growth still robust, house hunters are pushing outward from core cities to get more for their money.

“Home buyers are starting to see a bit of price fatigue and are starting to step back and think twice about making that purchase,” said Svenja Gudell, chief economist at Seattle-based Zillow. “Prices have grown so much over the last few years as part of the recovery that many markets are well beyond their initial 2006 or 2007 peak, so homes are now more expensive than they’ve ever been.”

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