UCLA Anderson Forecast calls for flat home prices, “No bubble bursting”

 As reported in the Daily Breeze 6/21/06:

An economic forecast released by the UCLA Anderson School of Business today calls for a "soft landing, with flat home prices and a mild economic slowdown". "That slowdown is unlikely to lead to a recession". In addition, "California's real estate sector will not see a bubble bursting in the next two years". "The bottom line is when you look down the California history and the history of other states, you only see a significant decline in home price . . . in recessions. And it has to be a fairly big recession", says Ryan Ratcliff, an expert on California's economy at the Anderson Forecast. "So since I'm not looking for a 1990's style recession any time in the next two years, I'm not predicting that kind of decline in home prices." "There definitely is this contingent that secretly hopes that home prices are going to tank so they can afford to buy a home, and that's just not going to happen,", says Ratcliff.

Patrick Duffy, a managing director of consulting at Hanley Wood Market Intelligence, upon reviewing the report, stated that the Los Angeles area real estate market seems to be safe from a big dip because it doesn't have the conditions that existed in the early 1990's. Generally, the South Bay is better off than many other parts of Los Angeles. "The closer you are to the coast, the better off you'll be regardless because of scarcity."

About mmegowan

I am a realtor with Remax Estate Properties in Palos Verdes Estates. Visit my website at http://www.maureenmegowan.com
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