Double digit inflation in home-buying is good news to the Southern California region which hasn't seen home profits for more than a decade. But the question is, how long can it continue? How high will home prices rise before buyers are priced out of the market?

Although many real estate analysts believe that the home buying wave will continue unabated, they base those on current economic indicators - broad-based employment growth, low inflation, low unemployment, and low interest rates. The current market contrasts sharply with the inflation-based boom of the early to mid eighties when real estate values were closely tied to the success of certain boom industries and fueled by Savings and Loan speculation, and then gave way to the inflationary late '80's marked by high interest rates and unaffordable prices.

According to a recent quote by Leslie Appleton-Young, chief economist for the California Association of Realtors, "The thing that always gives you pause in a hot market is the issue of affordability. Double-digit price appreciation can't go on forever without pricing people out of the market."

A just-published article in the Los Angeles Times indicated that Southern California may still be far from reaching its ceiling. Santa Clara County reached its pre-recession peak by March of 97 and, based on current projections, Orange County will surpass its previous high-water mark by the end of this summer or early in the fall, although parts of Los Angeles County probably won't get there until some time next year.  

Home values still have room to grow.

Published: July 1, 1998

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Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. For more articles by Blanche, click here.