Los Angeles Real Estate Market Woes
By Inside Inside Los Angeles Real Estate
(Inside Los Angeles Real Estate)
According to a recent article published in the Los Angeles Times, real estate prices are expected to drop across the board in California . In 2008, the California Association of Realtors forecasts that the median price of existing homes will decline 4% to $553,000. In contrast, during 2003-2005, home prices increased at a rate of 16% per year. The glory days seem to be over as the market readjusts to general softness in home sales. Even though home sales experienced a downturn of around 23% for 2007, homes are optimistically forecasted to increase by 3.5% to a record of $576,000. It comes down to another fundamental lesson in supply and demand. The housing market simply is not immune to general principles of economics, as the supply of new and existing homes in California as of August 2...
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