The Housing Bubble Is Dead, Long Live the Housing Bubble

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Well, maybe not everywhere, but in Southern California the good times are definitely rolling again:

The median home price in Southern California surged a stunning 28% in June compared with a year earlier — outpacing any month during last decade’s housing bubble. The gain puts the median at $385,000, up from $300,000 last June.

Some experts warn that prices, driven by short supply, should cool off soon….But others see nothing but higher prices ahead, with supply staying tight and buyers scrambling to close deals before the window of affordability slams shut.

Syd Leibovitch, founder and president of Rodeo Realty in Beverly Hills, said he expects prices to double from their bottom last year. “You have a lot of room to run,” Leibovitch said. “Because historically, they always double in these cycles, and then they drop back a bit.”

Yeah, baby! Prices always double during these cycles. You can take it to the bank.

Or maybe not. Plenty of the folks interviewed by the Times don’t think these prices are sustainable. My instinct says they’re right, but all it takes is another few months like June and we’ll be back in mega-bubble territory, just waiting for it to burst again and wreck the local economy. Good times.

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Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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