Loading...
Economy

Another SoCal Housing Bubble Already?

Comments (0)

By

Thu, Aug 15, 2013 at 9:02 AM

click to enlarge JEREMY LEVINE / FLICKR
There's no better sign of an economy on the mend than stupid money being thrown around like "rain" at a strip club.

We told you yesterday how home buyers last month put $5.39 billion in cash down on homes in what was the hottest July for residential real estate around Southern California in eight years. Now a report from home-buying site Trulia says SoCal is in the middle of an honest-to-goodness housing bubble. What does that mean?

It means that, only months out of this Great Recession (it officially ended in 2009, but it sure didn't feel like it), we're paying too much for houses.

Maybe way too much, depending on your opinion.

Trulia says Los Angeles home prices "relative to fundamentals," i.e., other economic indicators, are being overvalued by at least 10 percent these days.

For Orange County, that "overvalued" figure is even greater: 12 percent.

In fact, the O.C. (No. 1) and L.A. (2) lead the nation's "bubble watch," in the words of Trulia.

click to enlarge TRULIA
  • Trulia

But things might level off a bit. Jed Kolko, the site's chief economist, writes:

The three factors that are contributing to the price slowdown -- expanding inventory, rising mortgage rates and fading investor interest -- aren't going away any time soon, which should put a cap on how much prices rise.

We'll see.

Send feedback and tips to the author. Follow Dennis Romero on Twitter at @dennisjromero. Follow LA Weekly News on Twitter at @laweeklynews.

Related Content

Related

Now Trending

Los Angeles Concert Tickets

Slideshows

  • Street League Skateboarding Super Crown World Championship
    On Sunday, Street League Skateboarding touched down in the Galen Center at USC as part of a four-stop tour for SLS's Super Crown World Championship. The L.A. stop determined the roster for Super Crown, airing August 24th on FOX Sports 1. The final eight are Nyjah Huston, Luan Oliveira, Torey Pudwill, Shane O'Neill, Paul Rodriguez, Chaz Ortiz, Matt Berger and Ishod Wair. All photos by Nanette Gonzales.
  • Comic-Con's "Celebrity" Autograph Area
    A sometimes overlooked (but still incredibly unique) aspect of San Diego Comic-Con are the celebs available to sign autographs, as well as the autograph seekers themselves. If you've ever wanted to meet the Soup Nazi from Seinfeld or the guy who played Michelangelo in the original Teenage Mutant Ninja Turtles, chances are, as you wander the Autograph Area, you'll be able to connect with someone you didn't even realize you were waiting your whole life to meet! All photos by Rob Inderrieden.
  • Real Madrid Soccer Practice at UCLA
    Fans came out to greet world champion soccer team Real Madrid as they practice at UCLA. This is the first time that soccer star Cristiano Ronaldo has practiced with the team this year. All photos by Jeff Cowan.