Friday, April 15, 2005

Jobs, Housing Boom In High Desert

The Desert Dispatch has this report on the boom in home prices "from over the hill". "Average prices for High Desert homes sold in March appreciated 37.4 percent compared to sales prices for the same month last year."

"Average housing price for sold listings tops the list for the High Desert, at $315,542. "What's fueling the rising local housing prices? 'Just a good economy and a lot of jobs coming up here,' Larry Trombley said. For example, he cited the addition of 100 jobs at the Wal-Mart Distribution Center in Apple Valley."

"Housing prices are still going up down the hill."

13 Comments:

At 7:52 AM, Anonymous Anonymous said...

Europe will use interest rates to control its housing bubble. They even recognize that there is one. Their press even writes about it.

http://www.iht.com/articles/2005/04/14/business/ecb.html

 
At 8:22 AM, Anonymous Anonymous said...

Ben, here is a similar story being heard on SF Bay area news radio this morning. The story probably has serious exaggerations of facts and cites no sources. Anyway, brainwashing continues by headlines such as "Home Sales Continue to Break Records in Bay Area"

http://www.kcbs.com/pages/kcbs/news/news_story.nsp?story_id=69108045&ID=kcbs&scategory=Computers

 
At 8:29 AM, Blogger John Law said...

speaking of Europe, Donald Trump said that RE in the US won't fall because foreigners will step in and buy because of the weak dollar...am I sensing another bankruptcy?

 
At 8:42 AM, Blogger goleta said...

Didn't Japanese participate in the last RE bubble and got burned badly? The dollar was weak at that time too.

 
At 8:44 AM, Blogger Ben Jones said...

Thanks for the links. Most countrys are much more realistic than the US regarding the bubble. Even China!

I recently had a grown man, and a homeowner, tell me that if he doesn't hear something on the network news, he doesn't believe it.

 
At 8:48 AM, Anonymous Anonymous said...

I dont know how much walmart pays. Going by what I read in the newspapers, it cannot be too much, given that all over the place communities are protesting the opening of walmart. but

"For example, he cited the addition of 100 jobs at the Wal-Mart Distribution Center in Apple Valley."

this gives rise to over 3000 average(was it median?) pin in the desert??.

Madhu

 
At 9:08 AM, Anonymous Jim in Venice said...

Wow! 100 jobs at the Walmart distribution center!

I wish they would open one of those in Venice... then maybe I could afford the $850,000 (asking price, at least) house for sale on my street.

 
At 9:09 AM, Anonymous Anonymous said...

Canadian renovations are booming.

http://www.scotiacapital.com/English/bns_econ/retrends.pdf

The home renovation industry has accounted for 6% of Canada's GDP and 12% of all new jobs created. That is one in eight !

It seems as though the housing bubble has not only been keeping the US alive, but also Canada.

The report also has a bunch of US housing stats.

 
At 10:07 AM, Blogger John Law said...

I think this time it's much more of a case of foriengers lending the money, and the US buying.

eventually foreigners will come in, but this time they'll be buying(or foreclosing) on the cheap.

 
At 10:39 AM, Blogger Sunny said...

From Jim:

"Wow! 100 jobs at the Walmart distribution center!

I wish they would open one of those in Venice... then maybe I could afford the $850,000 (asking price, at least) house for sale on my street."

Where did the old formula of house payments being 40% of monthly income go? If you go by median income, most are priced out of every single market using that measure.

 
At 11:45 AM, Blogger dwr said...

"Where did the old formula of house payments being 40% of monthly income go?"

Who needs to save for college, retirement, or rainy days when all one has to do is "own" a home for a few years? Obviously the 40% cap no longer applies!!

 
At 3:10 PM, Anonymous Anonymous said...

At 9:08 AM, Jim in Venice said...
Wow! 100 jobs at the Walmart distribution center!

Ladies and gentlemen, we have turned the corner. Good times are here again. Let us, as the youngsters say, party like it is 1999. Woohoo.

 
At 3:23 PM, Anonymous Anonymous said...

I don't believe that prices are increasing in the desert because of an increase in jobs in the area. I believe that the prices are increasing due to a "Fringe Effect".

What happens is that buyers get priced out of an area where they would prefer to live, so they look to the next closest affordable area, which in turn creates demand in that area. With the new demand comes higher prices, and so on until this area becomes unaffordable, then its on to the next closest affordable area.

I would even bet that a large portion of the residents don't even work in the area and even commute more than an hour each way to work.

 

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