Do you believe the current volume of speculators will still be buying homes during the last half of 2012?
Yes. (65%, 161 Votes)
No. (35%, 88 Votes)
Total Voters: 249
California’s housing supply is shrinking! Is this a Wall Street Minsky Moment for California’s real estate market?
Data: Housing inventoryProperties available on the market through the multiple listing service (MLS). has decreased by 49% in Los Angeles and 53% in San Diego this summer, compared to the same period one year ago. This lack of listings is causing bidding wars.
Result: Sellers have received high multiples of bids, 50 or more on a single property, lifting home sales volume and prices in the second quarter (Q2) of 2012. All this action puts sellers in the most competitive position they’ve held since the dead cat bounceA brief rise in home prices or sales caused by artificial or temporary market factors; not indicative of a true recovery. of late 2009 and early 2010 during the tax credit episode, which stimulated a homebuying surge and resulted in momentum driven speculation.
Thus, a huge level of inventory displacement has taken place, but is it that moment of instant, long-term change?
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