Friday, September 28, 2012

Dr. Housing Bubble — Welcome back California home flippers!

It was only a matter of time for flippers to engulf the market once again. House flippers never really left but the magnitude hit a temporary lull during the housing crisis. Apparently all is well in SoCal once again and bubble 2.0 is back in full fashion. It is only a matter of time before the cable shows shift from the insane Canadian housing bubble and start filming our local neighbors taking a plunge into the new bubble market. Flipping at these levels can only exist in a partial mania like atmosphere. The constrained inventory and rising prices is pulling many people off the sidelines and I have heard this said a few times already, “I’m not missing the housing market this time!” Maybe it is the California sunshine that gets into our heads but we appear to have forgotten the housing bubble that just hit us a few minutes ago. Flippers are back in fashion and many hipster neighborhoods in SoCal and the Bay Area are bringing along a new party.
Dr. Housing Bubble
Welcome back California home flippers! Home flipping is back in fashion. 852 square foot home in hipster LA neighborhood bought for $211,000 in 2010 and flipped for more than double the price this year.

Here we go again. Chairman Bernanke will be pleased.

1 comment:

Ralph Musgrave said...

What do you expect with QE and low interest rates? (Meanwhile millions continue to fester in unemployment).

Let’s all say a big “thankyou” to the crazies on Capitol Hill and their equivalents in other countries.