1.

Urban Planner Wannabe, many municipal planning departments would be very grateful to have a volunteer intern in their office. Just be sure they will allow you to work on projects with them rather than just filing. This should give you a good idea of whether or not you want to pursue the career, at least as far as public sector planning is concerned.

If you want to be a "working planner," that is, if you want to work in local government planning, I suggest Cal Poly Pomona's URP program. Their masters program is an evening program so you can work in the field at the same time you are studying. USC and UCLA also have good programs, but even one well known USC professor has told his grad students how outstanding the Cal Poly program is. And really, if you are going to be working in planning, is it really worth accumulating as much debt as you would attending a school like USC? (Maybe some of their graduates can chime in here.)

2.

Need a Home: You've got it backwards. The golden rule of investing is "buy low, sell high". You're getting ready to "buy high and ride the downward slide".

Find a cute little rental that's affordable - maybe something that's not that appealing on the surface but that has character below all of that bland white paint and create yourself a home until prices come down. Stash $$ away whenever possible and then look to take advantage of someone else's misfortune (foreclosure, grandma house where grandma's been moved into the rest home/died, etc.)

Real estate is cyclical and those who have foolishly "invested" at or near the top of the curve are going to wind up driving around in a U-Haul and their leased SUV looking for a place to rent because the mortgage company finally put them out of the overpriced house they "bought" with that oh-so-attractive interest only, zero down loan.

3.

Cal Poly's program is great if you want to work in the public sector. It is this very reputation that causes the private sector to wince at the school's recent grads. Public sector employment is not something everyone aspires to. Though if you do, the school may be for you.

UCLA's program fairs well at producing public sector workers, but it really excels at producing employees for the not for profits that specialize in advocating the redistribution of wealth. Many affordable housing developers and left leaning city councils have strong UCLA representation.

USC's program puts out a few public sector planners and a lot of private sector planners or consultants. USC planning grads are likely to be exposed to some level of free market thought as a result of sharing building space with MREDs (master of real estate development). This is something that can be incompatible with non profit and public sector work.

All three programs have their merits. As many one time planning students may recall, "If planning is everything, then perhaps it is nothing".

4.

Come hither to Highland Park, you displaced hipster. Just make sure that you don't buy any of the overpriced crap on the market. Rent yourself a lovely little bungalow and enjoy the live-action gentrification.

5.

Dear Echo Park Renter,

If you have a job, plan to live in L.A. for another seven yrs, you should start looking and you may find a good deal-the process takes a while anyway.
I would like to offer you my services as a R.E. attorney/broker and direct lender--they're free.
Let me know and I will provide you my contact info.

All the best.

6.

Don't forget to check out the West Adams district. Been there for 13 years. Contact the West Adams Hertige Association at www.westadamsheritage.com

7.

Just buy what you can afford. Home ownership is the american dream and if foreclosure becomes your reality, I can think of worse outcomes. The decline has been "inevitable" for four years. Might as well be the Great Pumpkin.

8.

Need a Home, I am in the same delimma. I just got 'gentrified' out my silverlake home of seven years and now I am renting again for now even tho I want to buy. Prices are coming down from "Man, that's way, way too much" to "Man, that's a lot". My advice, get a mortage preapproved and start looking around a lot. Make it a hobby. As soon as houses on the eastside start to hit the high 400s (trust me, it's coming) buy, buy, buy. Also, put all the extra money into a CD, that way, you won't spend it.

9.

Re inquiry #1: I'm at USC in the School of Policy, Planning, and Development right now, but I'm a PhD student so my experience really isn't applicable to your situation.

Nevertheless, "Nay Sayer" is pretty much right on. Let me also add that USC seems to have a much greater policy orientation than UCLA, which until very recently had its planning department in the architecture school. (Contemporary architects, as we all know, tend toward a curious mixture of socialism and profound contempt for the proletariat.) This makes a USC education a good bit more, well, practical; you will find very few starry-eyed New Urbanists coming out of what one longtime adjunct calls "Figueroa Tech." (This fellow, who has taught economic development at 'SC since the mid-'70s, refers to UCLA as "The New School for Social Justice at Rancho Buenos Ayres.")

A final note: while USC faculty tend to be pro-market, the real estate development students tend to be pro-business. There's a huge difference. While there is certainly disagreement among various faculty members as to what particular aspects of contemporary planning practice are damaging and which are benign, there is consensus that the status quo is not acceptable and genuinely harmful to the poor and vulnerable.

10.

To the echo park prospective buyer. You didn't mention how much you could afford and if you have money saved. Oh, right, but that doesn't matter to the mortgage brokers out there. The property taxes are roughly 10% which means IF you get a house that is cheap (say $500k), u are also paying $500/month in taxes. Whatever you buy now at a low end (under $600k), u will need to hang on to it for about 5 years to guarantee you get throught the lows that will hit. I suggest getting a condo near a university or downtown that is a 2 BR and renting out the other room to help pay your $3000/month mortgage. You might not like the neighborhood, but you have to ask yourself, do you want to make some money or make someone else money. I couldn't have gotten into the market without roommmates and that was 3 years ago. Otherwise, yes, sit and enjoy your rental in your hip neighborhood and save, save save and start hitting foreclosures sales. You'll be bidding with international buyers too who know LA real estate is a good deal comparitively, so you can see what they go for now.

11.

why throw money away on rent? shop around and buy something you can afford. use the old 28/36 rule. put down at least 20% and avoid PMI. if you dont have the downstroke you cant play the game. save up until you do. single family is better than condo. much safer investment. look for a cosmetic fixer with good bones. find/hire a good inspector and a great broker. don't use the inspector that your broker reccomends. he/she will be a "yes man/woman" in it to make the deal. the reason the broker reccomended that inspector is that they are, shale we say... "forgiving"...

the broker should be someone familiar with the area you are intersted in. use more than one broker but be upfront. tell them they are your broker for their area/neighborhood of expertise. a godd Silver lake broker knows very little of Eagle Rock and vice versa. hire a seasoned profesional broker, not some kid who claims to know the latest flavor of the month actor.. do NOT sign an exclusive with a buying agent.

before you buy know the market inside out and be pre-approved so you can strike if you find something you like. scour the internet mls listing. sign up for free email service. remember: its not "timing" the market its "time IN" the market. over the long haul you will do ok if you bought ok.

12.

Save your pennies and buy downtown once the builders realize they've built an ENORMOUS number of condos that no one wants to pay half a million for.

Starter condos are already starting to appear in the high 200,000s downtown, and I have the feeling that that's the start of a wave.

Los Angeles is in a middle/upper middle class exodus (see e.g. http://www.latimes.com/news/opinion/la-op-kotkin28jan28,0,708324.story?coll=la-opinion-center).

Since, even in a wonderful place like L.A., there are only so many rich people to go around, with the exodus of the middle class, we'll be competing with the poor to buy houses, which should result as follows:

Extremely wealthy - continue living in their nice neighboorhoods.

Educated people with families who aren't extremely wealthy - Say hi to everyone in Houston, Atlanta, Portland, Denver, Charlotte, etc. for me.

Educated people without families / Diehard Angelenos - finally may have a chance to own their own homes/condos while being able to sleep at night without mortgage nightmares.

Middle class and below - will get a variety of nice cheaper rental property as the supply goes up, but the projected demand doesn't appear. (Not that that's what the builders intended, but that's how it goes.)

Only parts of L.A. real estate are a bargain internationally speaking. There are plenty of lousy neighborhoods here that cost a lot more than lousy neighborhoods elsewhere.

Los Angeles real estate will calm down, or the exodus will continue, and that exodus can only continue for so long before the calming down becomes a plummet.

13.

eh, where are starter condos apearing in the $200,000's downtown? Are you talking south of MLK or what?

14.

John, where are the 200K condo in Downtown? I want one!

15.

John, you a fan of Joel Kotkin? You'll also like the useless opinions of Wendell Cox, Mike Davis and the Easter Bunny too.

16.

Should You Continue Renting or Should You Buy?
(taken from an article I just wrote for the Santa Monica Daily Press)

Several times a week someone tells me, “My friends say wait to buy because the market is going to go down this year.” I am sure these same friends were telling these same people the same thing last year. Let’s focus in on Santa Monica Condominium sales for example. Last year, when the “bubble” was bursting median sales prices went up 12.3%. The median sales price for all types of real estate in Los Angeles went up 7.3%. Yes, the number of sales went down from 8,269 in 2005 to 6,888 in Los Angeles and average days on market went up from 41 to 57 days. However, 2005 was a record year for real estate sales. The fact that the pace of sales decreased in 2006 means the market shifted from going a metaphorical 100 miles per hour, a pace that is impossible to maintain, to a more sustainable 70 miles per hour.

Let’s say for example that you didn’t listen to your friends or the media and purchased a home last year for $700,000. At the median increase in value of 7.3%, you would have enjoyed about .6% or $4,200 a month gain in equity.

Another misconception is that it is better to rent now than to own. It may be better to rent if you don’t plan on being in the same place for more than a year or two or if you just moved to Los Angeles or Santa Monica and don’t know what neighborhood will work best for you. There are also some people who can’t come up with the money every month for the mortgage, taxes and home expenses. For all the rest of you, households making a combined income of about $90,000 a year or more, it is a good business decision to buy.

Thanks to the media created “bubble” hype, and an ever increasing demand for shelter in Los Angeles, rents have increased about 12% citywide in the past year. Many rental seekers have said they see closer to a 15-20% gain on the Westside and in Santa Monica. You can buy a very nice 2br condo in a great Santa Monica neighborhood for around $700,000. This same condo will now rent for around $2,800-3,200 a month. To own it, with a 6.25% interest rate, taxes and $300 a month in dues, it will cost you approximately $4,900 a month. However, after taxes at 30% (many people pay more), your effective cost is about $3,100 a month. If you hold onto this same property for the next five years and enjoy a modest 3% or $21,000 increase in value per year, you will make over $100,000 in equity. If you sold and paid about 6% in closing costs, clearing $40,000, your effective cost of homeownership is only about $2,400, less than renting and a steal of a deal if you consider that rents will also be going up over the same period.

So, the next time a newscaster on CNN or a friend at the coffee shop tells you it’s a bad time to buy just hand them this article or have them contact me via my web-site: www.SantaMonicaSimon.com

Simon Salloom is a Realtor who specializes in Santa Monica Real Estate with Coldwell Banker Residential Real Estate Brokerage, Brentwood Court Office. He is ranked in the top 3% of Coldwell Banker agents Nationwide for sales volume.

All statistics taken from the Multiple Listing Service of the local, Beverly Hills Greater Los Angeles Association of Realtors.

17.

Wow, I didn't know it was possible to achieve that much success in real estate by insulting people's intelligence!

18.

i think i just threw up in my mouth a little...
to bring the discussion full circle, the wanker above (16) is why many planners roll their eyes at USC and it's emphasis on real estate. rather than working for the greater good, you become the kind of person who has a head shot on his or her business cards.

19.

Not sure how "households making a combined income of about $90,000 a year or more"

are supposed to be able to buy a $700,000 condo!

What a joke.

20.

#16. Thank you for that incredibly concise summary of the NAR talking points. Hilarious. It sure is a great time to buy *or* sell a hous... er.. home. Damnit! I used the wrong word. Thanks again.

21.

please, I appreciate you are busy, Peter, but could we have a point by point rebuttal of Simon's post instead of a jab and run.

and eprobert: He doesn't say the 90K couple can afford the 700K house. It is two different examples. That sort of distortion makes me think you don't have a real argument.

Try to read objectively. Some of us come here for the education of a good debate only to be driven away by the loud drunks down at the end of the bar.

22.

"As California's prosperous glow tarnishes, a new report from the University of California, Berkeley, warns that the state could face sharply escalating unemployment rates, a leveling off or decline in home prices, rising office vacancies and reduced construction over the next two to three years."

http://www.berkeley.edu/news/media/releases/2001/05/17_prosp.html

that was published may 17, 2001. I think that was one week after we closed on our home. the dot com industry had crashed, there was a writer's guild strike looming that was going to "shut down the entertainment industry" for a while. Prices had stagnated and there were even some price cuts. but we were happy with the purchase, could handle the payments, understood our loan, and were willing to stay in it even if values dropped for awhile. we're still there.

23.

Below you will find a chronological listing of selected Los Angeles Times articles originally published between the years of 1985 and 1997 (inclusive) culled from their archives. The similarity among headlines from then and now is quite informative.

1985-1986: Housing is booming, inventory is low.
Housing Starts Surge 14.9% During January, Best Gain in 20 Months
Los Angeles Times (pre-1997 Fulltext); Feb 20, 1985; pg. 1

Inventory of Housing Dips in Southland Unsold New Homes Declined by 3.2% from End of l984
DAVID M. KINCHEN; Los Angeles Times (pre-1997 Fulltext); Mar 16, 1986; pg. 1

Housing Sales Boom Keeps Inventories Slim
DICK TURPIN; Los Angeles Times (pre-1997 Fulltext); Aug 24, 1986; pg. 1
1987: Housing still booming, prices increasing, inventories low.
High-End Home Sales Push Up Median Price
Dick Turpin; Los Angeles Times (pre-1997 Fulltext); Mar 15, 1987; pg. 1

Inventory of Unsold Homes Sets New Low
Los Angeles Times (pre-1997 Fulltext); Mar 15, 1987; pg. 1

Fewer Homes, High Prices as Mortgage Rates Climb
TOM FURLONG; Los Angeles Times (pre-1997 Fulltext); Sep 10, 1987; pg. 1

Fixed-Mortgage Interest Rates Surge Woes Mount for Home Buyers, Brokers
TOM FURLONG; Los Angeles Times (pre-1997 Fulltext); Sep 10, 1987; pg. 1

Unsold Homes Inventory Drops for Third Time
DAVID M. KINCHEN; Los Angeles Times (pre-1997 Fulltext); Sep 13, 1987; pg.1
1988: People start to question the boom. Realtors assure us the boom will continue. Houses aren't like stocks afterall.
'88 Outlook Bright for U. S. Real Estate
Dick Turpin; Los Angeles Times (pre-1997 Fulltext); Jan 10, 1988; pg. 1

County's Median Resale Price of Homes Reaches $179,999, Costliest in California
JOHN O'DELL; Los Angeles Times (pre-1997 Fulltext); Mar 23, 1988; pg. 5

Unlike Stocks, Home Prices Rarely Collapse
JAMES FLANIGAN; Los Angeles Times (pre-1997 Fulltext); Aug 28, 1988; pg. 1

Southland Inventory of Unsold New Homes Lowest in Decade
DAVID M. KINCHEN; Los Angeles Times (pre-1997 Fulltext); Sep 11, 1988; pg. 10

J. M. Peters Reports Skyrocketing Sales for Second Quarter
MICHAEL FLAGG; Los Angeles Times (pre-1997 Fulltext); Sep 14, 1988; pg. 5

Limit Issue Driving Up Home Prices
Dick Turpin; Los Angeles Times (pre-1997 Fulltext); Sep 18, 1988; pg. 1

Hot Housing Sales Belie Doom Forecast
Ryon, Ruth; Los Angeles Times; Sep 25, 1988; Vol. 107, Iss. 297; 8; pg. 1
1989: Prices are very expensive; affordability an issue. Sales slow and prices drop. Mention of risky loan types.
Housing Prices in State Climb 3% in February
Furlong, Tom; Los Angeles Times; Mar 29, 1989; Vol. 108, Iss. 116; 4; pg. 1

Stock of Unsold Homes Drops Dramatically
DAVID M. KINCHEN; Los Angeles Times (pre-1997 Fulltext); Apr 2, 1989; pg. 9

How First-Time Buyers CAn Get Their Piece of the Dream
Myers, David W; Los Angeles Times; May 21, 1989; pg. VIII1

State's Home Sales Drop 14% Median Price Tops $200,000 for First Time
Crouch, Gregory; Los Angeles Times; May 25, 1989; pg. IV1

Sales of Existing Homes in State Fall During May
Furlong, Tom; Los Angeles Times; Jun 23, 1989; Vol. 108, Iss. 202; 4; pg. 1

Orange County Home Sales Drop by 22% in May
TOM FURLONG; Los Angeles Times (pre-1997 Fulltext); Jun 23, 1989; pg. 1

Realtors Tackle New Topic: How to Handle Slow Housing Market
Myers, David W; Los Angeles Times; Oct 1, 1989; pg. VIII1

Prices Drop, Sales Slow in State's Housing Market
TOM FURLONG; Los Angeles Times (pre-1997 Fulltext); Nov 29, 1989; pg. 1

Housing Affordability Rises Outside L.A., Orange County
Kristof, Kathy M.; Los Angeles Times; Dec 06, 1989; Vol. 109, Iss. 3; D; pg. 1

Survey Cites Four California Banks With Possibly Risky Realty Loans
JAMES BATES; Los Angeles Times (pre-1997 Fulltext); Dec 30, 1989; pg. 1
1990: Prices take a serious plunge. One article claims that housing booms are a bad thing and we should hope prices stay low. Increasing mortgage rates are blamed for the bust. The word "recession" is mentioned. Gloom and doom.
Home Sales in Southland Plunge in '89
Samuels, Alisa; Los Angeles Times; Feb 8, 1990; pg. D2

The Number of Homes for Sale Sets a Record Real Estate: San Diego becomes buyer's market, with 4,000 existing homes listed in January.
GREG JOHNSON; Los Angeles Times (pre-1997 Fulltext); Feb 13, 1990; pg. 2.A

Pray That the Housing Boom Stays Dead
Jones, Robert A; Los Angeles Times; Apr 24, 1990; pg. A3

Climbing Mortgage Rates Hurt Existing Home Sales
Samuels, Alisa; Los Angeles Times; Apr 26, 1990; Vol. 109, Iss. 144; D; pg. 3

California Is Nearing the Edge of Recession, UCLA Forecast Warns
Anderson, Harry; Los Angeles Times; Jun 29, 1990; Vol. 109, Iss. 208; D; pg. 1

California Real Estate Market Continues to Cool
TOM FURLONG; Los Angeles Times (pre-1997 Fulltext); Jul 26, 1990; pg. 1

Home Sales in July at Slowest Pace in 4 1/2 Years
Furlong, Tom; Los Angeles Times; Aug 28, 1990; Vol. 109, Iss. 268; D; pg. 2

Realtors Hear Gloomy Price, Sales Forecasts
Myers, David W; Los Angeles Times; Oct 7, 1990; pg. K1

O.C. Home Resales, Prices Fall Sharply Housing: Realtors group attributes slump in county and state figures to fears of recession.
MICHAEL FLAGG; Los Angeles Times (pre-1997 Fulltext); Oct 26, 1990; pg. 5

Housing Slump in California Seen Worsening
TOM FURLONG; Los Angeles Times (pre-1997 Fulltext); Nov 21, 1990; pg. 1
1991: A "dead cat bounce"? Some folks wondering if the bust has bottomed out or not. Sales are abysmal (e.g., -42%). Other parts of the country showing some signs of recovery.
Back to Basics
Inman, Bradley; Los Angeles Times; Jan 20, 1991; pg. K1

Re-Assessing When Home Prices Fall
Boyer, Jeanne; Los Angeles Times; Feb 3, 1991; pg. K1

California Still Among Lagging Areas, Fed Says
JAMES RISEN; Los Angeles Times (pre-1997 Fulltext); May 2, 1991; pg. 1

Reading Signs--Is Market at Bottom?
Inman, Bradley; Los Angeles Times; Sep 8, 1991; pg. K1

County's New-Home Sales Plunge 42% for Quarter * Real estate: New figures indicate the market is sputtering again after a brief recovery. The inventory of unsold houses rose by 15%.
GREGORY CROUCH; Los Angeles Times (pre-1997 Fulltext); Oct 4, 1991; pg. 5

Home Sales Decline in California
Los Angeles Times; Nov 26, 1991; pg. D1

Home Sales Decline in California Housing: The drop in mortgage rates fails to spur sales in the state, but sales of existing homes across the country edge up in October.
Los Angeles Times (pre-1997 Fulltext); Nov 26, 1991; pg. 1
1992: No one is buying; housing is an investment that no one will touch. Desperate political efforts being made to encourage house buying. Rock bottom prices and lower mortgage rates encourage some purchasing. The year ends with some buying. Another "dead cat bounce"? It's not clear.
Move-Up Home Buyers Pretty Much Left Out Real estate: While Bush's plan may boost first-time purchases, it does little to dispel caution in the other key housing sector.
JUBE SHIVER Jr.; Los Angeles Times (pre-1997 Fulltext); Jan 30, 1992; pg. 4

Home Sales in State Fell 6.2% in 1991
Shiver, Jube, Jr.; Los Angeles Times; Feb 12, 1992; D; pg. 1

Spring Thaw Real estate: The local housing market is showing signs of recovery. More realistic selling prices and reasonable interest rates have helped to spur sales.
PATRICIA WARD BIEDERMAN; Los Angeles Times (pre-1997 Fulltext); Mar 26, 1992; pg. 1

Housing Starts Increase 6.4% to 2-Year High * Economy: A strong surge in apartment building leads the way, providing economists with more evidence of a sustained recovery.
JUBE SHIVER Jr.; Los Angeles Times (pre-1997 Fulltext); Apr 18, 1992; pg. 1

June Home Sales 3.5% over May but Trail 1991 Figure
Los Angeles Times; Aug 2, 1992; pg. K1

August Housing Starts Rebound 10.4%, U.S. Says
Marshall, Matt; Los Angeles Times; Sep 23, 1992; D; pg. 1

California Home Sales Surge
Myers, David W; Los Angeles Times; Nov 25, 1992; pg. D1

Sales of Existing Homes in California Rise Again
Myers, David W; Los Angeles Times; Dec 24, 1992; pg. D1
1993: It's definitely a buyer's market. Some people are saddened by the fact that current prices are 50% of what they were in the 1980's. The housing bust in Southern California is clearly negatively impacting the California economy and the national economy at large. Sellers are desperate to sell (and some people taking extreme measures like putting huge "for sale" signs on their lawns for passing planes to see). Folks who waited out the boom to buy at the bottom are being handsomely rewarded for their patience. Proof-positive of the contrarian investing style -- be greedy when everyone is fearful and fearful when everyone is greedy. The "slump" may be ending.
Long Southland Housing Slump Finally Ending?
DAVID W. MYERS; Los Angeles Times (pre-1997 Fulltext); Feb 10, 1993; pg. 1

Housing Market Warming Up After 3-Year Slump Real estate: Optimism returns to Southland with rising sales. Number of homes on market is down.
DAVID W. MYERS; Los Angeles Times (pre-1997 Fulltext); Feb 10, 1993; pg. 1

A sad Westside story: Home prices have declined up to 50% since late 1980s
Myers, David W; Los Angeles Times; May 28, 1993; D; pg. 1

Couple Put Up a Big Sign of the Real Estate Slump Housing: They write `For Sale' in huge letters on their lawn, hoping to attract attention from passengers in planes and jets on flight path to LAX.
DICK WAGNER; Los Angeles Times (pre-1997; Apr 29, 1993; pg. 8

Home Sales in County Climb by 3% Real estate: The market bucks the downward trend of neighboring areas. But analysts say don't be too optimistic.
STEPHANIE SIMON; Los Angeles Times (pre-1997 Fulltext); May 28, 1993; pg. 1

It's a Buyer's Market as Peninsula Home Prices Tumble Real estate: Younger families are taking another look at an area that was once beyond their economic grasp. This could revitalize the school district.
TED JOHNSON; Los Angeles Times (pre-1997; Jun 24, 1993; pg. 3

Home Sales Up 6.3% in State, 4.6% Nationwide Real Estate: Analysts credit low interest rates and say buyers are beginning to think that prices may have bottomed out.
DAVID W. MYERS; Los Angeles Times (pre-1997 Fulltext); Jun 26, 1993; pg. 1

California's real estate slump deepens
Miller, Greg; Los Angeles Times; Jul 27, 1993; pg. D2

Southland home values lead U.S.--Downward
Myers, David W; Los Angeles Times; Aug 4, 1993; pg. D1

Bottom Line: Housing Market May Be Mending Real Estate: Despite a three-year slump, experts say prices are stabilizing, especially for homes under $500,000.
PATRICIA WARD BIEDERMAN; Los Angeles Times (pre-1997 Fulltext); Aug 22, 1993; pg. 1

Buyers Seek Bargains as Home Prices Keep Sliding Real estate: La Canada Flintridge emerges as bright spot with a nearly 21% increase in sales over same period last year.
ANDREW LePAGE; Los Angeles Times (pre-1997 Fulltext); Sep 2, 1993; pg. 1

Sitting on the market: After the cash, owners adjust to the region's housing slump
Myers, David W; Los Angeles Times; Sep 20, 1993; D; pg. 1

State's bargain hunters boost new-home sales to 3-year high
Myers, David W; Los Angeles Times; Oct 1, 1993; pg. D1

Home Sales Rise Sharply in State, Nation Real estate: Size of increase surprises housing analysts. Median price in California is down 4.3% from 1992 figure.
DAVID W. MYERS; Los Angeles Times (pre-1997 Fulltext); Oct 26, 1993; pg. 2

Jump in new-home sales spurs hopes of long-awaited revival
Myers, David W; Los Angeles Times; Nov 3, 1993; pg. D1

Drop in Southland Home Sales Slows in First 10 Months of '93
Los Angeles Times (pre-1997 Fulltext); Nov 28, 1993; pg. 4

U.S. home sales hit 14-year high
Myers, David W; Los Angeles Times; Nov 30, 1993; pg. D1

Slump in O.C. Housing Market May Be Ending Real estate: November figures show a major year-to-year increase in the number of units sold. Median price still sags.
JOHN O'DELL; Los Angeles Times (pre-1997 Fulltext); Dec 21, 1993; pg. 1
1994: Housing begins its comeback. People who had the intelligence to wait for the bottom are buying now at great values. Even rising mortgage rates are not shaking the recovery.
Bright Spots Some Areas Showing Signs of Recovery After Four-Year Slump in Home Prices
Los Angeles Times (pre-1997 Fulltext); Jan 16, 1994; pg. 1

Lenders scramble to keep housing comeback alive
Myers, David W; Los Angeles Times; Mar 30, 1994; D; pg. 1

First-Time Buyers Who Waited Spark Housing Rebound Real estate: After years of ice-cold sales, the city's Westside market is finally starting to heat up.
SCOTT SHIBUYA BROWN; Los Angeles Times (pre-1997 Fulltext); Jun 5, 1994; pg. 10

Home Sales Up 24% From Last Year
Los Angeles Times (pre-1997 Fulltext); Jun 26, 1994; pg. 6

June Home Sales Best in 5 Years Ventura County Is Leader
Jack Searles; Los Angeles Times (pre-1997 Fulltext); Jul 26, 1994; pg. 8

Rising mortgage rates shake but don't break state housing industry
Lee, Patrick; Los Angeles Times; Oct 7, 1994; pg. D1
1995: Some parts of the Southland are recovering others are not. People with "negative equity" are in despair.
Home Sales Rise 10.5% in State, Hit 5-Year High
JAMES F. PELTZ; Los Angeles Times (pre-1997 Fulltext); Feb 9, 1995; pg. 1

Southland Home Price Rebound Fails to Appear
JESUS SANCHEZ; Los Angeles Times (pre-1997 Fulltext); May 22, 1995; pg. 1

County Home Sales Slide 20.4% in May
DAVID R. BAKER; Los Angeles Times (pre-1997 Fulltext); Jun 13, 1995; pg. 1

Home sales surge 19% in May, raising doubts of rate cut
Mowbray, Rebecca; Los Angeles Times; Jun 30, 1995; D; pg. 1

Study of Homeowners Finds `Negative Equity' a Problem Real estate: Nearly 5% owe more than homes are worth. Impact hinders the state's economy, experts say.
DEBORA VRANA; Los Angeles Times (pre-1997 Fulltext); Jul 6, 1995; pg. 1

O.C. Real Estate Sales Drop Property: Preliminary figures for July suggest the county's housing market is still in a slump.
DEBORA VRANA; Los Angeles Times (pre-1997 Fulltext); Aug 1, 1995; pg. 1
1996: A tentative recovery is still in the making.
State's housing market finally in turnaround
Sanchez, Jesus; Los Angeles Times; Oct 25, 1996; pg. D1, 1

O.C. homeowners more confident
Fulmer, Melinda; Los Angeles Times; Dec 3, 1996; pg. D.2

Ready to fly? Region's housing prices on rise, moderately
Sanchez, Jesus; Los Angeles Times; Dec 29, 1996; pg. D.1
1997: Finally, housing has recovered.
Southland Home Sales Are Unseasonably Hot Real estate: In O.C., October sales were 46.5% higher than last year. Median price of $208,000 was highest since 1994.
E. SCOTT RECKARD; Los Angeles Times; Nov 14, 1997; pg. 1

Median Price for O.C. Homes Surges 10.5%
E. SCOTT RECKARD; Los Angeles Times; Dec 10, 1997; pg. 1

And the rest, as they say, is history.

24.

Regarding post #16. A rebuttal:

For $2700 a month you can rent a 2 bedroom 2 story “townhouse apartment” with new appliances and two parking spaces:

http://losangeles.craigslist.org/wst/apa/273904802.html

PI on a $700K loan, 20% down, 6.25% fixed rate 30-year loan would be $3448.

By your numbers above, TI + HOA (taxes, insurance, and HOA/maintenance) would be $1451.

The tax savings for the first few years of interest payments is approximately $2900 (initial monthly interest) times 30%, which is $870…and that assumes that you are already itemizing your deductions above and beyond the standard deduction. Otherwise your mortgage payment is eating up money that you would have gotten back from the standard deduction anyways.

So we have:

Monthly Principal + Interest payment: $3448
Monthly taxes + insurance + maintenance: $1451
(Maybe) income tax savings: -$870

Total monthly outlay (including POSSIBLE tax savings) : $4029.

So how is the cost of buying $3100 a month? You can’t write off the principal payment, nor the maintenance. I think you can write off the taxes, but that would not bring us down to $3100 a month.

So let’s meet in the middle…let’s say the cost of owning is $3500 a month.

So the monthly cost of owning is $3500-$2700 = $800 a month.
That’s $9600 a year.

But wait, i could take that down payment and make at least 5% a year safely. That’s $140,000 x .05, which gives us another $7000 a year.

That’s $16,600 a year.

That’s assuming no appreciation and no rent increases.

So for the next one, two, three years, it may make sense to rent rather than buy, even if you are thinking of staying in an area long term…unless you think that rents and appreciation will continue to go up. Why not wait a year or two, build up some cash reserves now, and then buy?

I firmly believe that buying makes sense in the long term for a majority of people, but I DON’T believe that “it’s always a good time to buy

25.

Echo Park renter:
If you can, stop renting NOW and buy in Highland Park! Plenty of charming and safe pockets throughout the area, especially north of York.
Good luck!

26.

Excellent Fact Checker. Thanks for that

Looks like those two posts above (24 and 25) indicate it is definitely a time to wait. Prices could drop as much as 50% over the next two or three years even if this was a normal run up we have just seen, and it was far from that.

Hope I can hold on . . .

27.

god you guys are sooooo boring,..
just listen to #25

the rest are like listening to paint dry.

28.

patty cake... you're annoying! Time and time again... annoying posts! Better boring than annoying in my book.