DAD dropped this into the comment box on a previous post, but I think it is worth it’s own headline.
Check out “America’s Most Troubled Luxury Neighborhoods” in this weeks Forbes magazine. The basic argument is that unsold inventory is rapidly growing in these neighborhoods, as expected, and thus the prices there are due to tumble.
“The data still say Santa Monica is stronger than other nearby markets. It’s just 14% off peak prices, versus Los Angeles, down 38%. But the beach city’s inventory of unsold homes has just crossed the 15-month level, as high as Los Angeles’ were last year. By that grim logic, Santa Monica’s values are likely to tumble as far as those in Los Angeles did last year, 27%.”
No related posts.
