I’ve assembled some charts depicting the progression of median housing prices in SoCal and the Bay Area since 1994. The numbers come from Dataquick. I find that it’s easier to grasp the enormity of the housing bubble of the past decade when the sale prices are graphed. It’s also a useful “at a glance” reference to provide to anyone who disputes that California house prices, especially those in SoCal, used to be much more in line with the rest of the nation than they are today.
What will the future bring? The sharp downward slope of the past 6-8 months is one strong indicator, and seems unlikely to relent anytime soon, as economic conditions are worsening and credit standards are tightening. I don’t claim to have a crystal ball, but it wouldn’t surprise me if most of the gains of the past eight years or so prove to have been only temporary. Much of SoCal has already retreated to 2003 levels in real terms (adjusted for inflation). The Bay Area looks to be cracking as well, though lagging behind SoCal by about half a year.
April 21, 2008 at 3:40 am |
Beautiful job. Love the drop. Great vindication for me. Now if I could only tell all the idiots that made fun of me 3-4 yrs ago about not buying in No Cal see this. I would love to see the look when it translates into real dollars in the hole they are.