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."