Wednesday, May 12, 2010

Prospects for Real Estate Recovery in Los Angeles

Perhaps there was a good reason for the housing boom, says the New York Times.

[whoops, this link is now dead:
http://finance.yahoo.com/news/Was-There-Good-Reason-for-a-nytimes-3118998957.html?x=0
new link, fixed 12 Oct 2011:]
Homeowners and speculators in Los Angeles are hoping for a recovery. What are the prospects?

In my estimation, not very good for the near term. The last time Los Angeles real estate peaked in 1988 it took over 8 years to get back to even. The peak this time was much more pronounced, which will make the recovery that much longer and more painful. Look for a return to "normalcy" in Los Angeles real estate sometime in 2014 or 2015.

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