Yes, that’s right folks, it’s the housing bubble déjà vu all over again – at least in the City of Angels. According to news stories published this week (Los Angeles Times and CBS), housing prices rose 28.3 percent since last June. Whoa Nelly! That’s a big jump and it seems eerily familiar to what happened in the mid-2000’s.
If my memory serves me right, this was a direct quote said to me (I’m a 1st hand witness!) from a mortgage broker at the time (circa 2005), “Prices won’t ever go down, so you better buy property soon!”
Granted, this was when the average price of a very modest home in a so-so neighborhood was fetching $525,000 for a “roomy” 3 bedroom, 2 bath, 1,200 square foot house. No, I did not transpose those numbers – that’s One-Thousand-Two-Hundred square feet. I post about small and little houses all the time, but by no means do I want to pay half-a-mil for something that small.
I like small, but I associate “small” in size to “small-er” in price.
Now, let me get down off my soapbox and share an infographic that I have no way of proving if the data is accurate or fudged and what angle this company is coming from. However, this graphic was designed by a property management group, so my gut tells me they might say, “Yay! for renting!” I don’t necessarily agree – buying property has many more benefits than renting, but renting has it’s benefits too. Such as, you only have to pay a deposit less than 5-years of your salary. (Tongue and cheek there my friends!)
Without further adieu…
*Side note, though. Looking closely at this infographic, towards the bottom it states, “Renters seem to place the majority of their decision [not to buy] on their current lifestyles…” This sounds like some bad planning and I’m gonna lump myself into this as well. As someone who’d like to own property before I’m 80, it stings a bit to know I’ve probably been making some knuckle-head moves when it comes to the rent/buy dilemma.
What say you? “Crazy LA people”or “go team go?”