A quote from today’s L.A. Times says it all:
“Southern California home prices are surging as the spring buying season heats up, with the median price in March hitting $400,000 for the first time in six years.
“But a deeper look at the market reveals a recovery divided between the rich and everyone else.
“The market for high-dollar homes is hopping, with sales on the rise and buyers launching bidding wars. But sales of low- to medium-priced homes have plummeted during the same period — with many potential buyers priced out….” Tim Logan and Andrew Khoury, Home Prices Surge, Sales Plunge, L.A. Times, April 16, 2014, front page, above the fold.
So y’all think that a home market where half the homes sell for over $400,000 isn’t going to end badly? What do you suppose will happen when interest rates go up?
We again remind our readers, as we do regularly, that back in 1979, in his dissent in Agins v. Tiburon, California Supreme Court Justice Willam P. Clark, warned that California’s extreme regulatory climate would lead to a cleavage of the population, and its division into the well housed rich and others.