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Newportfiji, Real Estate Pro in Long Beach, CA

When will the Los Angles County real estate market bottom out?

Asked by Newportfiji, Long Beach, CA Thu Apr 24, 2008

Apart from a few “the world is flat” realtors, everyone realizes that home prices are falling in Los Angeles County. The question is when will the bottom out and when can we expect to see 2006 prices again? The last cycle took about 11 years to reach peaking pricing. Here are your Los Angeles County vanilla medians between 1989 and 2000: http://www.laalmanac.com/economy/ec37.htm

1989: 214,831
2000: 215,900

Pretty amazing, someone who purchased the “median home” for 214,831 sold for 215,900 11 years later. However, this bubble appears even larger that the 1989 run up as depicted in the following graph: http://latimesblogs.latimes.com/laland/2008/04/where-we-stand.html . However, prices are falling faster, so perhaps we can reach a bottom faster. I predict a bottom in 2012 and reaching 2006 pricing again in 2016. Agree or disagree?

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The truth of the matter is, none of us have a crystal ball and we can't predict the future. There is only one way to know when the markets have changed, and that's after they have changed. When we look in the rear view mirror, we see what's happened, but we can't focus on the past, otherwise we'll miss the inevitable climb that lies somewhere in the future.
Web Reference: http://www.jongriffith.com
0 votes Thank Flag Link Thu Apr 24, 2008
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