California tiered home pricing
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Home prices rose across all property tiers in Los Angeles, San Francisco and San Diego in February 2013. Low-tier home prices were 18% higher on average in February 2013 than one year earlier. Mid-tier prices were 14% higher and high-tier prices were 11% higher. This pricing activity demonstrates the continued high speculator presence in the market, as their demand is focused in low- and mid-tier homes – not high-tier properties.
Pricing was at its lowest in early-2009. Today, prices have adjusted near to their historical mean price level, which is tied to consumer inflation. The future trend for pricing will consist of a slow, gradual increase in 2013-2016, moving along with the mean price. The rapid price rise seen primarily in low-tier home sales during 2012 was driven by speculation, which will continue off and on well into 2016.
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About The Author
ft Editorial Staff
is the writing staff comprised of legal editor Fred Crane, In-House Broker Consultant Fernando Nunez and writer-editors Connor P. Wallmark, Giang Hoang-Burdette, Jeffery Marino, Carrie B. Reyes, Sarah Cantino, Matthew Taylor and Matthew Shade.
![BPI-12-2012[1]](http://firsttuesdayjournal.com/wp-content/uploads/BPI-12-20121-106x75.jpg)
I’d love to see these adjusted for inflation. Then the prices today would likely be somewhere below the 1990 peak.
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these are adjusted for inflation, unless you think the inflation rate was 0% from 1989 to 1999.
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Excellent graphs, but the “matching” could be the “HUMP” vs. “FLAT LINE” and thus this could show the weakness of the cheaper homes “owners & shoppers” vs. the more expensive properties. AKA the higher the price, the less the volatility or “beta”….
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