The 2Q NAR existing home sales report came out this am, and shows that some of the overheated real estate markets showed no signs of cooling. Among the areas that I would note as overheated are:
- Phoenix: +47.0% yr/yr
- Ft. Myers: +45.2% yr/yr
- there were also several other cities in South Florida that showed 30%+ growth
These are the areas about which I am most concerned. I was heartened to see that my local market, Los Angeles, grew by a more modest +8.3%, after several quarters of +20% growth. I think it is feasable that this market, given its low levels of supply, could experience a soft landing. I am far less sanguine about those other markets.