And here is your housing chart, showing barely a a decline in the 1980's, inflation adjusted. That's like 13%. Non-inflation adjusted prices showed no decline at all.
mysite.verizon.net
Mortgage rates were highest in about 1982, but the bottom of the RE market was in 1983-84.
mortgage-x.com
The difference here, of course, is the price spike from 2000-2007, sending everything above normal values, especially the coast. But unlike the coast, IE is nearly back to "normal" levels in many areas.
Most people can't afford a million dollar house without an exotic mortgage, but there are scads of them in coastal CA. That's why interest rate hikes are going to affect coastal housing more than IE housing. On average, IE housing prices are close to the national average (about $175K according to one of the charts I posted).
LA County is 2.5 times higher. Coastal is even higher than that. I'm in the West Valley, in a suburb 40 miles from downtown LA and 15 miles from the actual coast, but house prices here average $850K. In nearby Westlake Village, the average listing price is $1.5 MILLION.
Seems to me, that such prices have further to fall than houses in the IE that approximate the national average, especially if interest rates rise. |
