Wednesday, August 29, 2007

Over-valued real estate #26 - Santa Cruz




I started out thinking that my hometown was the greatest bubbletown in the US, but things are worse on the West Coast. Prices in Santa Cruz have been rising since 1997 and a currently 80 percent above long run trend.

The bubble took a pause in 2001, and at one point prices actually fell a little. Unfortunately, the bubble took off again in 2003. It is time again for the good people of Santa Cruz to think about property valuations again. Don't they look just a little too high...........

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