There is talk about how homes in the Westside aren’t as affected by current conditions in the housing market. And I tend to agree. I think many folks do. Well, professor Stephen Cauley, who is the director of research at the Richard S. Ziman Center for Real Estate at the UCLA Anderson School of Management recently spoke about the Westside housing market.
He actually noted that property was too cheap on the Westside because it should be compared to cities around the globe, like London and Paris rather than say, Chicago. (Interesting). But before you get bent out of shape, see what else he had to say. Here’s a bit for you to read:
Los Angeles is being viewed in the wrong frame of reference regarding property values, and rather than comparing it to cities in Ohio or to Chicago, it should be compared with international cities such as London, Paris and Madrid, said Cauley.
The Westside is more insulated from the ups and downs than Orange County, but what happens to the economy does affect us, he said.
Cauley said he sees the long run for Los Angeles and the Westside becoming international over the next ten to 15 years, bringing major change to the Westside.
There will be a feedback effect from high home prices, said Cauley, asking where engineers and scientists will live.
California is becoming like a Third World country, balanced between the well-to-do and the uneducated, low-income individuals, Cauley said.
The state has major fiscal problems with an adverse impact on growth, resulting in the need for public services for an increasing fraction of the population and a decrease in people paying taxes, said Cauley.
Interest rates are key in determining the health of the economy and real estate in the near to medium term, and interest rates are likely to “go up a whole bunch before they go down,” Cauley said.
California sees a bigger financial problem with tax rates going up, and what happens to interest rates determines what happens to the economy and real estate values, according to Cauley.
You can read more in this Argonaut article.
And here are a few new on the market Playa del Rey condos for you.
8600 Tuscany Ave., #404/1 bd, 2 bth/$419,000
7740 Redlands St., #G3095/2 bd, 2 bth/$430,000
8515 Falmouth Ave., #212/2 bd, 1.75 bth/$569,000