See Rich’s articles on the front page addressing the employment myth. They contributed to the downfall and may have made it worse, but the drops in employment started well after housing prices peaked in the last bubble.
I too live in LA. I’m on the WestSide, where there isn’t much room for another vehicle on the road, much less any significant SFR building. However, there are thousands of condo units going in, generally high-end Century City and rehabs of 4-plexes into 16+ unit buildings in West LA. This has suppressed the condo market here. Compared to Westside, there is tons of room to build in Burbank.
Otherwise, my area is eerily similar to what San Diego experienced 1 year ago. Not much movement on prices, still hanging in there, but inventory is up significantly and days on market is high. Many houses come off the market only to be re-listed within a month or so. (sound familiar).
In my opinion most of LA is about 1 year behind SD’s cycle. This should become obvious in the late Spring if it isn;t already. I don’t think we are as overpriced as SD, but it is close and LA will not be spared.
