NY Times on the Day Los Angeles’ Housing Bubble Burst

Thanks to my friend Michael for pointing out this interesting NY Times article about the decline of the Los Angeles’s real estate market…in 1980. The article itself is actually from ’84, and it’s creepy how much of this very same language I heard from our broker when we were buying our house 20 years later:

Every day, home buyers would look at the prices and say, ”It can’t go on.” But every day, for five years, it did go on. Middle-class families were priced out of the market, and the brokers said, ”But the rich will always be able to buy.” Ordinary rich people were squeezed out of the market in some areas, but the brokers said, ”Never mind, the music business people will buy anything.” The music business fell into a depression in 1979, and the brokers said, ”The foreigners are buying. Compared with Paris or Teheran, real estate in Holmby Hills is a bargain.”

You know what they say, “Those that cannot remember the past are doomed to buy a $650,000 one bedroom fixer-uppper in Cypress Park.”

One Reply to “NY Times on the Day Los Angeles’ Housing Bubble Burst”

  1. I think it was Frazgo who was assured by his “inside banking sources” that prices would stabilize by years end and start back up soon after.

    Score one for me.

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