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Los Angeles Real Estate are we Heading for Another Bubble?

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Los Angeles County Real Estate Values have risen dramatically.  Due to stringent lending guidelines and the large numbers of cash buyers, at present there is no cause for concern of another real estate bubble.   But now that prices have appreciated I am sure the banksters  are just itching to loosen up credit criteria for buyers with small down payments …. Once that happens, I give it a year or two.

Here’s the five year comparison of average price per square foot:

La Canada real estate – Average prices per square foot
March 2014: $571
March 2013: $521
March 2012: $452
March 2011: $438
March 2010: $461
March 2009: $499

Glendale real estate values – Average price per square foot
March 2014: $403
March 2013: $356
March 2012: $302
March 2011: $325
March 2010: $344
March 2009: $350

La Crescenta real estate values – Average price per square foot
March 2014: $434
March 2013: $358
March 2012: $345
March 2011: $333
March 2010: $378
March 2009: $378

Pasadena real estate values – Average price per square foot
March 2014: $484
March 2013: $396
March 2012: $302
March 2011: $333
March 2010: $378
March 2009: $378

I just love dissecting these numbers.  Why the sharp drop in real estate values in 2011 vs. 2010?  The $8,000 federal tax credit expired in June of 2010.  This tax credit put first time home buyers in a feeding frenzy which cooled once the tax credit expired.

 

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