The average pricing for February increased 21% since last year, yet remarkably, sales haven’t dropped off much – what other industry could be so price insensitive?
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It looks like we’ve been on a comfortable plateau over the last six months:
We didn’t see the step-up from the $430-$440/sf range until mortgage rates popped last summer. Have we found the happy price-point for mortgage rates in the low-to-mid 4%s, or just levitating?
HT to daytrip for sending this in – a partial answer to the question, “who is paying these prices?”
http://www.bloomberg.com/news/2014-02-14/chinese-join-winklevosses-in-l-a-luxury-home-hedges.html
I would say that what happens is the population that make the schools so desirable finds it too expensive and moves to new homes built inland typically (well at least in the L.A. area that seems to be the pattern).
I have seen school systems go from among the worst to among the best in just a few years.
It has a lot more to do with the students than the system IMO.
From my experience People with school age kids also would rather live in a SFH than a high density Condo project and they will move inland in necessary to find that IMO anyway.
Single or single parent different story.
I don’t think that going to change overnight (well not in socal at least) despite what the Talking heads say.
What do the lots look like at $484/sf?
The same as they did two years ago at $375/sf. Pure inflation.