This is a very suspicious post to say the least. Please state a specific residential property or two that was bought in LA last year and sold this year for 6% more. House prices are declining not rising, I have many clients in LA who are in RE related businesses, and not one of them tells me that prices are rising in residential.

I am much less bearish than most here on RE, and have been consistently bullish on stocks for quite some time, but to say that everything is humming along just fine economically is a bit disengenous.