How's Los Angeles holding up?
For Sale signs are popping up again. I think a lot of people pulled their homes off the market so they could re-list (all fresh & new) during the traditional "spring bounce" when sales and prices are seasonally higher. My seat of the pants estimate is that we're close to the inventory high from last year and will be setting new highs in the coming months. Also, as long as I'm making predictions, 2007 is the year this city feels the sting.
Looking at housing tracker for L.A. show a 7.2% decline in the median price over the last 12 months. We all know that the median price is a "well-padded" figure due to seller incentives such as free closing costs, upgrades, etc. Adding inflation we're over 10% down from last year and I would guess it's really more like 15% in reality.
Over at The Bubble Buster the forecast for Los Angeles looks pretty bad. L.A. has lagged behing San Diego & Sacramento but the pressure from OC, riverside county, and Santa Clarita is mounting.
But don't worry kool-aide drinkers, the Housing (bubble) Bust is a good thing. While it's true that you're home is loosing value, it's only a number. Remember, a house is a home, not an investment - so quit worrying about it like it's an investment. It's not, silly! There don't you feel better? And there's more good news. The more prices come down, the more people can afford to buy homes. Then we'll all be homeowners - and that's what all the smart people are, right? No more bitter renters. So, home bust = good.