L.A. Housing Speculators Moving Out

Housing peculators are taking their profits from Southern California and investing in hotter markets in Las Vegas and Arizona.

"Southern California's high housing costs have become a big turnoff to investors...who have fled for more affordable pastures.

Many analysts say that's a good thing. Although the falloff of speculative activity probably means Southland home prices won't surge soon, it also could keep home values from tumbling â€" and lead to a much more desirable 'soft landing,' or flattening of prices.

Too much speculative activity from investors hoping to turn a quick profit is perhaps the biggest sign that a market â€" whether real estate or stocks or any other asset â€" is in an overpriced 'bubble' condition, economists say. Too many speculators drive prices too high, and when they sense that the market is topping, they tend to sell all at once, sending prices into a free fall."

Full Story: Housing Speculators Relocate to Hotter Spots

Comments

Prepare for the AICP Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $199
Planetizen Courses image ad

Planetizen Courses

Advance your career with subscription-based online courses tailored to the urban planning professional.
Starting at $14.95 a month
T-shirt with map of Chicago

Show your city pride

Men's Ultrasoft CityFabric© tees. Six cities available.
$23.00
poster

A Short History of America

From comic book artist Robert Crumb, poster shows how the built environment has changed throughout the decades.
$14.95