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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THIS IS BIG FOR US.

And we won't beat around the bush: Our fundraising drive to finish our current budget on June 30 and start our new fiscal year on July 1 is lagging behind where we need it to be.

If you value the reporting you get from Mother Jones and you can right now, please consider joining your fellow readers with a donation to help make it all possible. Whether you can pitch in $5 or $500, it all matters.

If you're new to Mother Jones or aren't yet sold on supporting our nonprofit reporting, please take a moment to read Monika Bauerlein's post about our priorities after these chaotic several years, and why this relatively quiet moment is also an urgent one for our democracy and Mother Jones’ bottom line—and if you find it compelling, please join us.

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