LA area home prices continue to rise (heck, so does inflation!), and less people are buying them.
The above article cites "inventory constraints, credit hurdles and reduced affordability". Sure, the articles a bit early for the season as now we're almost already in summer, but doubt it has picked up in sales, but just more somewhat overpriced inventory piling up as most residents - who rent - likely give up even bothering to try to save up a down payment or qualify for a mortgage.
People who are who are looking to uprade their housing situation after the proverbial spring cleaning and tax return season, are likely only moving into a either a more spacious or a more affordable rental in this economy and inflation, if they can find one with the rental market saturated and owners expective prices above comparable market values.
Definitely there's a new surge in foreclosures in the area thanks to the Homeowners Bill of Rights being passed last year which prolongs but doesnt relieve/stop the inevitable foreclosure process where a significant % of homeowners give up making ends meet and ultimately lose their home no matter how long it dragged on.
Investors actually able to finance these foreclosures should feel like in the candy store with the resultant surge in (short sales and) foreclosures, given regular sales being so increasingly 'greedily' priced (or maybe its more the inflation of the US dollar). Likewise, landlords already wealthy and looking to add another multifamily gold mine to their portfolio, are more and more willing to pay a million bucks for a fixer in a transient neighborhood (ie, Compton, Bellflower, Long Beach) just cuz it has 3-4 units.
As for economic recovery, imo, that was so last year =(
To what end? Any predictions as to what will happen in the next 5 years to the socal housing market?
I'm leaning towards most homeowners realizing the dollar is just practically worthless these days compared to even just 5 years back, so each year the price in lousy US dollars they would part with for their pride and joy and American dream is incrementally more, even if it means their houses and others' more and more pile up and sit on the market teasing agents who fail to bring an acceptable offer; and causing foreclosures, short sales, and distressed sales to sell at practically regular sale market value as compared to the overpriced inventory.