HOUSINGNEWS REPORT
LOS ANGELES SPOTLIGHT
she started to see signs of a coming downturn. “The thing I love about real estate is nothing ever happens overnight. You have time …Just pay attention to the details. … It’s not like the stock market that just falls out of bed.” Los Angeles-based economist Chris Thornberg agreed that an improving economy with rising incomes is insulating the Los Angeles housing market from anything “remotely smelling like a real estate bubble.” “The LA County economy is on fire. It’s been doing wonderfully, said Thornberg, founding partner at Beacon Economics, headquartered near the Los Angeles International Airport. “As expensive as LA is, we’re cheaper than the Bay Area. That’s one of the reasons that tech is looking south. “(The idea) that there is no affordability here is really just preposterous,” Thornberg continued. “If no one could afford it you wouldn’t see prices going up.” Affordability in Los Angeles County is still on par with historically normal affordability levels, according to the ATTOM Data Solutions Home Affordability Index, which gave Los Angeles County an affordability index of 100 in the fourth quarter of 2016. An affordability index of 100 is normal affordability compared to historical averages while any index reading above 100 is more affordable than normal and any index below 100 is less affordable than normal. In contrast
LA Home Price Appreciation by ZIP
-12%
22%
Click on map to view interactive nationwide heat map
Everybody wants the same. They want their kids in the neighborhood with a good school where they’re not going to shot … if I’m afraid to get out of my car in the daytime, I’m going to keep going. That’s not the house for me.”
Phyllis Rockower President and founder Real Estate Investors Club of Los Angeles
Rockower, president and founder of the Real Estate Investors Club of Los Angeles.
they’re not going to shot … if I’m afraid to get out of my car in the daytime, I’m going to keep going. That’s not the house for me.“ Rising Incomes Lifts Housing Boats Rockower said she predicted the last two major housing downturns in Los Angeles, but isn’t seeing any signs of an imminent downturn now. “Income is going up so (buyers) are able to afford more,” she said, adding that the slow-moving real estate market gave her plenty of time to exit back in 2005 when
“I don’t want expensive houses … all you need is a downturn in the stock market,” said Rockower, adding that renting homes in lower-end neighborhoods is another matter. “I don’t mind buying in marginal neighborhoods, but I sure wouldn’t want rentals in marginal neighborhoods. “Everybody wants the same,” continued Rockower. “They want their kids in the neighborhood with a good school where
ATTOM Data Solutions • P18
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