Case Shiller home prices released this morning show the FASTEST year-over-year price growth EVER. Faster than the housing bubble. While we don’t have that many crazy loans, my fear is we’ll have a price hangover shortly.
Inventory has bottomed. Some buyers seem to have hit a point where their FOMO hit the reality of affordability.
I don’t see things turning negative soon, but my guess is the peak is coming sooner rather than later.
Whenever you buy real estate, if you ask the 3 most important things, the list is location, location, location. In case, you didn’t believe it, here’s a map between Saturday’s high temps and median house prices in Socal.
Yes, there are other factors here, but there’s a reason people when they came to Socal they started building near the coast first.
In case you are curious why this temperature maps happen here but not in places like New England (although it does just not nearly as extreme), all of Socal is basically a desert so everyone should be 120 degrees. The mitigating factor here is the ocean. The Pacific ocean here is VERY cold for the latitude because currents come down from Alaska and bring in cold water.
To give you an idea, the water temps today are:
Thus, when the wind blows off the water, it cools down the areas close to the coast. The second mitigating factor is of course elevation.