Thursday, August 30, 2007

Overvalued real estate - Santa Barbara


It has been a while since I posted a housing price index chart. California is always the best place to find those ludicrously overvalued real estate markets. Santa Barbara prices are currently over 115 percent above trend. Over the last 5 years, prices are up over 130 percent. If this was a stock, I would be screaming SELL, SELL SELL.





Talking of stocks, I thought it might be interesting to see how some residential construction firms have been doing recently. We start with Hovnanian enterprises. Oh dear, investors seem to be dumping this stock. It must be that "soft landing" that those realtors keep telling me about at the open houses in DC.

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