Southern California Pro's

[Jacob Villalobos]

Any predictions for the 2016 Southern California market? Inventory is low and prices keep going up.  Any thoughts?

[Aaron Norris]

We base all of our decisions on data. If you're around California, I highly recommend attending one of the clubs where Bruce speaks. We always look at things like affordability, inventory, financing, new construction and a few other metrics. We look at this historically. Some areas like San Fran are way past their peak price in 2005/06 that got there because of financing. The crazy financing is not back in full force (yet), builders are not overproducing (build-as sold model currently), and the economy hasn't really fully recovered. In 2004/-2006, construction was a major driver. From what I'm seeing here in Riverside, it's just starting to get started. Where investors get deals has completely changed. Very little REOs and short sales.  But that's what California does. Who moved my cheese?!