I know I'm not supposed to report news like this, but today's L.A. Times has an article entitled Housing Prices Edge Towards Double Dip (the title above should link to the article). I don't dispute the stats, nor do I want to gloss them over, but here are some things to consider:
- These are national stats. All real estate is local, and some of our neighborhoods are seeing price rises.
- Studio City, Burbank, Toluca Lake and Sherman Oaks, et al do not have the same amount of foreclosures that other neighborhoods have, and foreclosures skew the stats lower as they make their way through the trustee sale process. Even short sales and foreclosures, when they eventually sell on the retail market, sell at market prices.
- This is good news for buyers as long as interest rates stay relatively low.
- If they purchased a home before 2003 (and didn't pull money out in HELOCs), most local sellers still have a lot of equity over their purchase price.
- Sellers with nice homes in nice neighborhoods at market prices are still seeing quick sales.