Sunday, October 08, 2006

Caught off Balance - LA Times Oct 8

Home Prices Falling
The good news is that the artcile stated that home prices are not falling rapidly. They quote Raphael Bostic, associate professor at USC's school of Policy, Planning and Development, as stating that prices are in for "a long, grinding slowdown, not a drop off a cliff". They do state that there are 12 metro areas where the price per sq foot has fallen from last year. It would be important to note, that appraisers do not use price per sq ft to do an evaluation of value, although the LA times seems to think that is the most relevant.

Crash Coming?
The article highlighted 12 "communities" that have had price declines from last year. The highest being a 6.7% drop in Eagle Rock. They also highlight that the Los Altos area of Long Beach had a 1.6% decline.

The facts on the smaller table!
What you are not really drawn to in the article is the table that is on the following page of the article where they list zip codes that had at least 50 or more single family home sales this summer. The striking fact in Long Beach is this:

  • Zip Code: 90806 -> 6.2% Gain
  • Zip Code: 90805 -> 7.9% Gain
  • Zip Code: 90807 -> 8.1% Gain
  • Zip Code: 90810 -> 9.2% Gain

Of 6 Long Beach zip codes that had at least 50 sales, only 2 had declines, but those were not highlighted in the article.

You Be the Judge of the Real Estate Market!