i agree with your post. Have read all the RE economic charts and reports over last 5 months and the data is conclusive ; SCal Re is overpriced by 30-40%. LA is one of the most overvalued regions-in the top ten- for inflated bubble prices. As of now Median home price in LA city/metro area is 599,000 which is 7.7% down from 649,000 in august(source is MSL tracker site from prof Piggingtons site).The bubble pop may already be happening in LA as we speak. With new increased min credit card payments added to a sharp uptick in energy prices homeowners will cut out discretionary spending and thus cause a cooling of the economy. The half dozen homes for sale in my stable neighborhood( SFH’s, good family area)have been for sale simce sept-oct and have not moved. I take the extreme pessimists view and see a sharp decline of 10% this year in SCAL overall and 15 % in LA Metro area. Just my hunch-if i’m wrong i apologize.
