Monday, September 29, 2008

LA House Prices again

Brad Delong has the Case-Shiller house price index for LA going back to 1987 on his blog today. Nominal house prices are now about double what they were in 1987, for an annualized growth rate of about 3.3 percent. Sounds reasonable to me.


doc said...

So nominal housing prices have risen at an annualized 3.3% rate since 1987. And the CPI has increased at an annualized rate of 3.1% between August 1987 and August 2008. So over that 21-year period, real housing prices have increased by 4.3%. In total. Or...real housing prices are (roughly) unchanged over the past 21 years. So maybe the current level of housing prices isn't all that far out of line? Or, if they are way too high, then they were also way too high in 1987?

geovani said...

Fears have grown for house owners and estate agent as house prices are again falling. Suring August we have seem the lowest slump of new mortgages for quite a while. Estate agents have reported that even potential buyers are performing a wait and see procedure as the government to announce its intentions over stamp duty after intense speculation that it could be scrapped for a time to boost the housing market.Ultimatley seen a 15% slump in prices this year and it is set to continue with a 12% slump for next year.


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