Inner LA Housing Market Appears to be in Strong Recovery Now

[Torie]

At least it is according to this source. (You need to click the "Silverlake - Echo Park tab on the left under "labels" to find the article.) The median price is up 18% since Jan 2009. This at least is one potential silver lining to California's fiscal woes perhaps.

[memphis]

Being up 18% in less than a year and half sounds pretty much like how we got into this mess in the first place.

[Verily]

Being up 18% in less than a year and half sounds pretty much like how we got into this mess in the first place.

18% is very slow growth compared to the bubble economies of Nevada, Arizona and Florida.

In any case, this is a heavily developed area, and almost all sales will be resales--which is a sign of a healthy real estate market. There's nothing dangerous about rapidly increasing real estate prices so long as the increasing prices are not coupled with new construction (which will eventually overwhelm the demand and pop the bubble). Thus, increasing prices in inner city areas, where new development is minimal, should not be a problem.

[opebo]

Anyway a spurt of fast price increase is normal after a dubious low set by panic - take a look at the stock market over the last week.

[Linus Van Pelt]

This at least is one potential silver lining to California's fiscal woes perhaps.

Well this would help the fiscal situation in a state in which property taxes increased with property values in the conventional way. Oh wait...

[Torie]

This at least is one potential silver lining to California's fiscal woes perhaps.

Well this would help the fiscal situation in a state in which property taxes increased with property values in the conventional way. Oh wait...

Well things got so bad, that assessments fell below the Prop 13 cap in a rather massive way, although not so much in inner LA I admit (except for stuff purchased from 2005-6 through early to mid 2008). I have a property in the desert that did that. The cap is about $480,000, the current assessment $285,000, and since the lien date is Jan 1, it will probably drop to $225,000 as of Jan 1, 2010, before going back up some the following year. Pretty ugly huh?

[phk]

These are the thirteen cities where, based on home values in 2007 and current unemployment, housing will never return to the levels of three years ago:

1. Riverside, CA. Housing prices are down 52% and unemployment is at 18%
2. Lansing, MI. Housing prices are off 38% and unemployment is 11.8%
3. Palm Coast, FL. Housing prices down 63% and unemployment is 16%
4. Sacramento, CA. Housing prices down 47% and unemployment is 17.5%
5. Orlando, FL. Housing prices down 49% and unemployment is 15%
6. Fort Meyers, FL.  Housing prices are down 65% and unemployment is 14.2%
7. Grand Rapids, MI. Housing prices are down 30% and unemployment is 14.3%.
8. Reno, NV. Housing prices are down 44% and unemployment is 13.3%.
9. Toledo, OH. Housing prices are down 30% and unemployment is 13%.
10. Boise City, ID. Housing prices are down 34% and unemployment is 9.9%
11. Rockford, IL. Housing prices are down 16% and unemployment is 17.9%
12. Las Vega, NV. Housing prices are down 51% and unemployment is 13.8%
13. Providence, RI. Home prices down 27% and unemployment is 13.2%

[○∙◄☻¥tπ[╪AV┼cVê└]

Rising housing values in California doesn't do much for those who can't afford the already overpriced houses, or the state government, which doesn't get that much in property taxes because of Prop. 13.

[opebo]

...never..

Dangerous word there..