Southern California Real Estate Values – “Los Angeles home prices are leveling off at about 18% below their pre-crash peak … Broad slowdown in rising home prices reflects more ‘normal’ market, experts say”
Southern California Real Estate Values:
Case-Shiller Reflects Market Slowdown
The S&P / Case-Schiller market survey shows the housing market cooling nationwide faster than expected. That’s not to say that values are decreasing, they’re simply increasing at a much slower rate.
Now, that may not sound like a good thing, but in fact, it is. Real estate values in Los Angeles, the San Gabriel Valley, and nationwide have been experiencing great volatility for quite a while now. Very swift rise in prices, sustained over a long period of time, is the perfect prescription for “a bubble”. And we all know what happens with those.
A slowdown in price rise to a steady, slower, but sustainable rate, is a good sign that the housing market is solid. That’s the kind of growth we really like to see. It means the market is much more reliable than one that shoots to the sky and then plummets into the depths in reaction.
Here’s an article about the Case-Shiller numbers by Tim Logan, from today’s LA Times :
“Analysts say the slowdown reflects a market that’s transitioning to a more normal pace of appreciation than the big swings of recent years, and most agree that’s a healthy development. ‘There’s little on the horizon to suggest it will change soon,’ said Bill Banfield, vice president of Quicken Loans.”. …
Steady As She Goes
A steadily growing market brings a breath of relief to analysts and market watchers. Keep an eye out elsewhere in these pages today for some analysis of the influences currently at play in the market.