Things should be slowing down on housing prices. It should be, but it's not. It's not that LA is invincible--we all know that a financial crisis can affect every city. But the fact is, that there is a housing shortage. And where there is a larger demand, prices will be high. A few years ago, I was very bullish about buying, but that's because prices and loan rates were at historic lows. Today, loan rates are still super low, but prices are high, and to add to the mix, there is a massive housing shortage. The laws of supply and demand say this should lead to ongoing high prices. Some are saying to buy now because the shortage will continue. Others are saying that a dip is imminent. It's hard to say who's right at this time.
This according to LA Times writer Steve Lopez:
"Today, home ownership in California is the best investment any of us will ever make, thanks, in large part, to a scarcity of housing. The pace of construction has not kept up with population grown and demand, so those of us with houses own a staggering amount of equity wealth that grows even as those without homes pay a higher price for survival.”
