Oh goody. According to a new report from Redfin, the Los Angeles housing market isn't just going a little crazy, it's approaching "mini bubble" territory. While prices are going up across much of the country, LA's increase is being called bubbly in large part because prices are rising much faster than incomes. We're joined in this dubious distinction by Wasthington DC, San Diego, and San Francisco. Some fun facts about the LA housing market in March:
--10 percent of houses sold were flips
-- The ratio of sale price to list price is just over 100 percent (meaning people are paying at or above asking)
-- 91 percent of houses received multiple offers
-- 52 percent of houses are going pending within two weeks of hitting the market
Redfin does take pains to point out differences from the last bubble; for instance, housing inventory is extremely low right now, and financing is still much tighter than it was in the peak of the crazy years.
· Is this another real estate bubble or just a lot of hot air? [Redfin]
· State O' The Market Archives [Curbed LA]