Tuesday, April 13, 2004

Housing prices

From today's LA Times: "Home Prices in L.A. Soar at Record Rate," by Roger Vincent and Don Lee.
Home values in Los Angeles County posted the biggest year-over-year increase in at least 15 years in March as frenetic buying activity pushed the median sale price up 29%, to a record $375,000, according to data released Monday.

Confounding predictions by the experts, sales were surprisingly strong, jumping 12% from a year ago to 10,875 new and resold houses and condos. Analysts and brokers said the heavy demand was driven by anxious consumers, many of whom are paying more than the asking price to get in the housing market before interest rates rise and supplies thin further.

The inventory of houses available for sale has been at historical lows, and the latest flurry of purchases suggests that the market will only heat up as the busy home-buying season nears.
For comparison, the article notes the median price in Michigan is $133,500. A few houses down the street from me, a 1,108 sq. ft. 2 bedroom, 1 bath bungalow is going for $550,000.

Of course, articles like this make me doubt my choices over the past years to 1) go to school and 2) not purchase a house because I was going to school and only working part-time, especially because finishing school is not so assured right now. Thankfully, my rent has been holding steady.

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