The spring bounce never arrived to the national housing market and certainly did not pay a visit to Southern California. Home values across the nation are experiencing a strong double-dip courtesy of a continually weak economy.
As the layers of financial bailouts are peeled back like an onion we realize that housing values were extremely inflated and incomes never justified prices. The mania was purely psychological and given the mini bounce in 2010, even an epic housing collapse wasn’t enough to deter more people from jumping back into the frying pan.
It was amazing how many people were telling me about the “deals” they were landing last summer. It was as if they were on the Antiques Roadshow and were told they had magically found an ancient coin in their mattress. Simplicity is rarely examined but the fact is nationwide incomes and incomes here in California never justified housing prices (in many areas of California bubble still persist). This is obvious.
Yet the banks are now wedded to inflated book values and the machine can no longer convince larger groups of people to buy. Southern California had no spring bounce and here we are entering the summer selling season.