Moody’s Economy.com predicts some price declines

A recent report released on October 5, 2006 by Moody’s Economy.com Inc., calls for possible declines in home prices of over 10% in 20 metro areas, however Los Angeles was not one of the areas listed. Price declines in Los Angeles of less than 5%, however, are predicted from their highs achieved in February 2006 until April 2008.

 I believe, however, that certain areas of Los Angeles will fare better than others, particularly the South Bay beach communities. These neighborhoods continue to have high demand due to their proximity to the beach, cooler weather, better schools, and high employment industries, such as the aerospace industry.