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Old 07-18-2013, 03:13 PM
 
127 posts, read 207,699 times
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The Housing Bubble Is Dead, Long Live the Housing Bubble | Mother Jones

Syd Leibovitch, founder and president of Rodeo Realty in Beverly Hills, said he expects prices to double from their bottom last year. "You have a lot of room to run," Leibovitch said. "Because historically, they always double in these cycles, and then they drop back a bit."


You hear what he said folks?
Prices "double" and then they drop back a bit, just a teeny weeny bit...but they DOUBLE!

I think this genius is onto something here... since the median is $530,000 now in Orange County I am thinking that by 2020 we should see the average at around $1.5 million. What say you? Oh of course, everyone will be making about 5% more in income at best, maybe even less.. but who the F cares. It's all good.
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Old 07-18-2013, 03:17 PM
 
Location: San Diego
34,911 posts, read 31,952,177 times
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Sweet!!
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Old 07-19-2013, 10:04 AM
 
Location: Oroville, California
3,183 posts, read 4,677,441 times
Reputation: 5489
They dropped back more than a "bit". Looked at the graph in the article. Most places, even in SoCal are still just getting back to the values they had in 2004 or so. In the Central Valley and parts of the Central Coast (Salinas for example) prices dropped by over half post-bubble.
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Old 07-19-2013, 12:52 PM
 
Location: Paranoid State
13,047 posts, read 10,366,998 times
Reputation: 15672
I talked to a realtor today. I wanted to pass along her inside-information real estate tip: Now is a GREAT time to buy, she said.
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Old 07-19-2013, 01:02 PM
 
Location: LA/OC
1,080 posts, read 1,729,543 times
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I wonder how much the guy from Rodeo Realty in Beverly Hills spent looking at the broader market. What he said makes even less sense in the luxury market. Either way, this is the kind of bubble housing I look forward to:

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Old 07-19-2013, 01:26 PM
 
483 posts, read 1,068,495 times
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If housing prices increase 10% a year, they will double in about 7 years. So it's not farfetched to think that prices could be double what they are by 2020.
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Old 07-19-2013, 01:32 PM
 
Location: LA/OC
1,080 posts, read 1,729,543 times
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Quote:
Originally Posted by countofmc View Post
If housing prices increase 10% a year, they will double in about 7 years. So it's not farfetched to think that prices could be double what they are by 2020.
The OP is suggesting that they would triple by 2020, the guy in the article doesn't give a time frame in which he expects this cycle to run.
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Old 07-19-2013, 01:34 PM
 
Location: Los Angeles (Native)
25,257 posts, read 15,257,337 times
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I really would not be surprised actually. I could see the higher end doubling like that actually.

You have a lot of people still from NYC and other countries thinking L.A houses are "cheap"..

I guess that's how it is when you need to spend $800k+ for a 1bedroom condo/apartment with thousands in HOA fees a month.

1.2million 3bedroom homes w/ yards look cheap

L.A is not a city where the prices of real estate are based on the incomes of the people actually working in the city. This is not the city for people that work. For the most part it is for people that have money from investments usually in other cities or countries for people buying homes today. Otherwise it's people that bought for ridiculously less money years ago, or inherited the house .
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Old 07-19-2013, 03:08 PM
 
Location: SF Bay Area
1,341 posts, read 1,349,185 times
Reputation: 825
Quote:
Originally Posted by johnmanners View Post
The Housing Bubble Is Dead, Long Live the Housing Bubble | Mother Jones

Syd Leibovitch, founder and president of Rodeo Realty in Beverly Hills, said he expects prices to double from their bottom last year. "You have a lot of room to run," Leibovitch said. "Because historically, they always double in these cycles, and then they drop back a bit."


You hear what he said folks?
Prices "double" and then they drop back a bit, just a teeny weeny bit...but they DOUBLE!

I think this genius is onto something here... since the median is $530,000 now in Orange County I am thinking that by 2020 we should see the average at around $1.5 million. What say you? Oh of course, everyone will be making about 5% more in income at best, maybe even less.. but who the F cares. It's all good.
A large percentage of these homes being bought in the last year have been cash purchases by investors since the stock market is already at a higher level and other commodities (gold for example) have fallen.These people need some sector to park their money to earn a quick buck. Doubling in price in the short term is a pipe dream. There is no pool of people lining up at banks getting gimmick loans by fogging a mirror. Those days are gone!
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Old 07-19-2013, 03:26 PM
 
Location: Los Angeles (Native)
25,257 posts, read 15,257,337 times
Reputation: 12099
That is true about many cash purchases. I also wonder how many of these purchases are cash but then turned into mortgages through refinancing. People realized that it got more difficult to buy a house with financing versus cash.

I don't know if there is any data regarding this though. It would be interesting for sure to know.

In L.A at least buying a rental property at these prices doesn't make much sense because rents aren't high enough to cash flow..and the potential flips have pretty much disappeared from the MLS.
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