Southern California housing market overvalued

Jeff Collins (OCRegister.com, Dec. 5, 2017); Ashley Wells, CC Liu (eds.), Wisdom Quarterly

Oh, to have a beautiful "home in the country" in the suburbs of Los Angeles like this!

The future in SoCal may be tiny living pods (mini homes) like Portland (The Oregonian/AP).

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It might be better to live in a bus in a garden

After 5 1/2 years of steadily rising home prices, Southern California’s housing market is “overvalued,” real estate data firm CoreLogic reported Tuesday, Dec. 5, 2017.

 

As of October the Los Angeles County, Orange County, and Inland Empire housing markets were among 37 top 100 U.S. metro areas where home prices were 10 percent or more above the long-term, sustainable level, according to the data firm’s latest Market Indicators Report. 

• Local housing market cools as median price dips $20K to $690,000
• Map shows extent of So. Cal. apartment boom. Will new construction lower rent?
• Wanna buy a house? Need to earn $120,000 in L.A., $159,000 in OC, $70,000 in IE

or a self-built log cabin in the woods

Twenty-six of those top 100 markets were undervalued, and 37 were “at value,” the report said.

 

Price gains in October, well above the previous year’s averages, helped push market indicators over long-term trends.

 

or build one, like this, for $1,500

Gains reported Tuesday in CoreLogic’s latest Home Price Index were sharpest in the Inland Empire, the region’s most affordable market, rising 8.1 percent. That’s the Riverside-San Bernardino County area’s biggest year-over-year house-price gain in two years. Inland price gains averaged 6.4 percent during the preceding year.

 

Los Angeles County house prices increased 7 percent in the year ending in October, with gains of 5.7 percent in Orange County, the region’s priciest housing market, CoreLogic figures show. Both were also above average gains for the previous 12 months.

 

A lack of supply of homes for sale accounted in large part for fall-time price gains. Southern California home listings have been at five-year lows since late August, a separate report by ReportsOnHousing.com shows. Tight supplies also have been reported both across the state and nationally.

 

Nationwide, the index value for U.S. homes increased 7 percent... More