The housing bubble is dead...long live the housing bubble! (Salinas: real estate, 2013)

[johnmanners]

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.

[1AngryTaxPayer]

Sweet!!

[BeauCharles]

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.

[SportyandMisty]

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.

[Joe Van Fossen]

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:

[countofmc]

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.

[Joe Van Fossen]

Originally Posted by countofmc

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.

[jm1982]

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 .

[Fastphilly]

Originally Posted by johnmanners

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!

[jm1982]

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.