Wednesday, March 16, 2005

Analogies Fly In Southern California

Industry professionals don't seem to know what to make of the "seemingly relentless" price appreciation in some California communities. Many are finding interesting ways to describe the housing mania.

"'February marked the 13th consecutive month that the region's median price rose at least 20% year-over-year..There's still plenty of gas left in the tank,' said DataQuicks John Karevoll."

Economist Christopher Cagan says the price increases are moving inland and "suddenly starting to pop, and when it comes, it comes like a really hard whip crack."

Sales are down however. "In Los Angeles County, sales dipped 8.6%, in Orange County sales fell 11%, in Ventura, sales slid 3.9%, and in Riverside County, sales edged down 2.7%. Michael Davin of CataList Homes in Hermosa Beach believes the region's high prices are "sucking the oxygen out of the market."

"San Diego should have hit the wall about a year ago," Karevoll said, "but since then prices have..gone up another 16%. There is some uncharted territory we're in right now," he said. "And we would love to have had a chart."

3 Comments:

At 8:22 PM, Blogger alexis said...

INHO, anyone who would buy a home in So. California right now should get an appointment with a psychiatrist instead of a loan broker! As a native, this place is nuts as people have bought more home than they can reasonably afford. People are buying by the payment rather than the price! What is so funny is that a poll has recently been released stating that over 20% of the people residing in LA County expect to leave it within five years. The schools are crumbling, the quality of life is getting worse, trafffic is beyond belief and we are being invaded illegally by a foreign country to the south. In general, people here are overburdened with debt to the point of tears. Just what will happen when interest rates rise is anyone's guess. My best take...Get ready, there will be plenty of properties for sale with bargain basement prices for those who have cash. The problem is that who in his right mind would want to live in an area that was at one time on of the best areas of the world to live in. Now it has become a third world toilet with no hope of truly improving itself. It's gone!

 
At 10:15 PM, Blogger Ben Jones said...

Get down Alexis!
Excellent take. It is hard to argue with any of your conclusions. As you said, get ready. Thanks for dropping by..Ben

 
At 6:54 AM, Anonymous Pamela said...

We just left beautiful San Diego for an out-of-state job transfer, that is contracted for 3 - 5 years. Oceanside was our home for 9 years, and Northern California for 6 years before that. Alexis says it best when he says that the quality of life in the area has gone downhill, and it is deeply heartbreaking. And I'm not even sure how you begin to fix a healthcare system, school system, illegal immigration system, and transportation system all at the same time. My husband would like to buy back into San Diego at some point, but I seriously doubt I really want to retire there. The weather just isn't enough for me to deal with all the other issues, and we don't even have children! I hope for the best, but, honestly, am afraid for the worst.

 

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