Housing Bubblets
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.
posted by J. Kahn @ 8:41 AM
1 comments
1 Comments:
I agree, Alf. Where I live, there is just no supply out there. And as the cost of building is rising due to labor, materials, etc., there is also less speculation. A soft landing would be the best outcome for the CA economy.
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