What real estate bubble?
With all the talk about a possible real estate bubble, or a slowdown in the market, it appears that the real estate market is still alive and well! Front page articles in Sunday's Los Angeles Times, and this week's Los Angeles Business Journal (article titled "L.A.’s Housing Market Surges, Ignores Gloom", read it here) report on the continued strong levels of activity and prices.
Now, there's a collaborating article online at CNN/Money titled "Slowdown? Real estate still going strong" that you can read here.
And the effect of Hurricane Katrina? Quoting the article, "According to the National Association of Realtors, with inventory of homes available for sale across the country so tight anyway, rebuilding the Gulf Coast will place additional pressure on all home prices."
Our personal experience is that the reduced level of inventory in our market has dulled the activity level in our area. And, some buyers have dropped out of the market entirely, due to many differing factors - high prices, sheer frustration over finding an affordable and suitable property, etc. We're not sure that Southern California will be a factor in the relocation of people from the Gulf Coast due to the price of real estate in Southern California.