Los Angeles real estate prices flattening?
Title insurer First American Corp. is comparing the recent run-up in the region's home prices to previous cycles and concluded that prices today could be at or near a peak.
In a study of 116 U.S. metropolitan real estate markets, Christopher Cagan, an economist for First American Corp. found that the Southern California market typically runs in eight-to-14-year cycles. Cagain believes Southern California has been in an upcycle since 1998, and is reflective of price jumps similar to the late '80s.
Then the market not only flattened, but depreciated as much 25%. Cagan doesn't expect a repeat of that kind of loss. Instead, much like most real estate analysts, he sees slowed, mostly single-digit appreciation, or depreciation, in most Southern California neighborhoods.
In a study of 116 U.S. metropolitan real estate markets, Christopher Cagan, an economist for First American Corp. found that the Southern California market typically runs in eight-to-14-year cycles. Cagain believes Southern California has been in an upcycle since 1998, and is reflective of price jumps similar to the late '80s.
Then the market not only flattened, but depreciated as much 25%. Cagan doesn't expect a repeat of that kind of loss. Instead, much like most real estate analysts, he sees slowed, mostly single-digit appreciation, or depreciation, in most Southern California neighborhoods.
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