The Housing Bubble Is Dead, Long Live the Housing Bubble

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Well, maybe not everywhere, but in Southern California the good times are definitely rolling again:

The median home price in Southern California surged a stunning 28% in June compared with a year earlier — outpacing any month during last decade’s housing bubble. The gain puts the median at $385,000, up from $300,000 last June.

Some experts warn that prices, driven by short supply, should cool off soon….But others see nothing but higher prices ahead, with supply staying tight and buyers scrambling to close deals before the window of affordability slams shut.

Syd Leibovitch, founder and president of Rodeo Realty in Beverly Hills, said he expects prices to double from their bottom last year. “You have a lot of room to run,” Leibovitch said. “Because historically, they always double in these cycles, and then they drop back a bit.”

Yeah, baby! Prices always double during these cycles. You can take it to the bank.

Or maybe not. Plenty of the folks interviewed by the Times don’t think these prices are sustainable. My instinct says they’re right, but all it takes is another few months like June and we’ll be back in mega-bubble territory, just waiting for it to burst again and wreck the local economy. Good times.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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