Greetings from vacation! I just couldn’t resist a comment on these numbers… We knew going in, October was going to post a bad month in the S & P/Case-Shiller Index, and it was, yet not entirely, specifically for California. There are 3 California cities in the Case-Shiller 20 city index: San Diego, San Francisco and Los Angeles. Each of these cities bucked the trend as did Washington DC and New York. Why?
My belief is that markets with “constrained supplies” will always fair better. It goes back to the old location, location, location argument. To expand on this a bit further, consider the likely breakdown of those areas and you would probably find that the better locations actually went up even more and that the less desirable areas (think inland for California), went down. What this means is, our market is showing strength as the economy improves. Like it or not gloom and doomers, I expect this trend to continue, and no I don’t believe there’s a Santa Claus…
The Real Estate Conversation 