According to Global Insight and National City Economics The IE is still 33% overvalued even though the combined median (Riv/San Berdu) is down to $303k. An additional 33% drop would put our median at $203k (that's even lower than I thought it should be). The last time that this survey thought the IE was fairly valued was in the first quarter of 2003 when the median price for the IE was $189k. We peaked in mid 2006 at 63% overvalued.
You can read the methodology they used to compile this report on their site as well as the excel spreadsheet with the numbers
7 comments:
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San Diego fairly valued. Give me a fu**in' break.
Yea, the OC is also rated as fairly valued but LA is 31% too high? There are some funky numbers in this report.
Funny...I've found that sellers still aren't getting the hint.
It is hard to say what is fair value for the IE, but I'd speculate that prices will deteriorate to the cheap side in some of the newer areas. You've got gobs of houses for sale, mostly by distressed or intermediary sellers. This ain't a formula for stabilizing prices.
IE has been down big time. But homes LA and OC are still ridiculous overvalued. I checked some homes in Anaheim today, most sellers are asking over $500,000 more than the price in 1999. For example, some houses were on market for about $1 million vs. the sale prices of $400,000 range in the late 90. Some sellers are asking $700,000 for the houses they paid around $200,000 ten years ago. It's so ridiculous. I wonder why the bubbles in LA, OC and Silicon Valley do not burst.
And some of you guys are getting tempted to buy now? Please.
"I wonder why the bubbles in LA, OC and Silicon Valley do not burst."
Um, because of the root and soul of real property is location, location, location?? Some things are just self evident. C'mon people, use your common sense. You're naive to think that LA, OC and Silicon Valley are overvalued considering these are major economic hubs of California.
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