Are
Los Angeles Real Estate Prices Stabilizing?
Monday,
October 9, 2006
In recent months
many home buyers have pulled out of the real estate market,
deciding to wait for a few months to see what happens. To be
sure, more homes have hit the market followed by some price
depreciation, however, is the big price correction still to
follow?
Realestatejournal.com
points out that while real estate data has shown declines in
recent months, many real estate reports, such as one by Harvard,
point out that declines of 5% are extremely rare and require
severe overbuilding and massive job loss - neither of which have
occurred in the Los Angeles area. Consequently, predicting the
real estate market is like predicting the stock market - it's
almost impossible to predict.
Then, last Friday, Allen Greenspan noted that the "worst
may be over" for the real estate market (more).
Consequently, if the job market in the Los Angeles area stays
strong and mortgage rates stay at their current levels, or even
drop, real estate prices might just stabilize. Sure home values
might not appreciate much, but they won't depreciate much
either, until something causes the next real estate boom or
bust.
Again, predicting that is almost impossible.
More on the California
Real Estate Bubble.
|
