Housing Prices Are Headed Down

The lastest real estate figures from the Valley indicate: i) the median price of a home in the Valley fell by $18,000 from June to July, to $607,000; ii) the number of sales is down, again (i.e., sellers are still asking more than people are willing to pay); and ii) the annual increase in the median price (i.e., July 2005 to July 2006) was the smallest annual in TEN YEARS.

Translation: the roller coaster has just passed over the top, the clickety-clack sound has stopped, and prices are headed down. BUT: prices are "sticky downwards," to use some economics jargon, so it's going to be a relatively slow ride down.

Anyway, keep this in mind as you ponder affordable housing, billion-dollar bonds, tax hikes, interest rates, and taking out that second mortgage to put your kids in private school if Villaraigosa takes over the LAUSD.

Read all about it in the Daily News: http://dailynews.com/ci_4165543