Letters to the Editor

Re: 'Economic think tank bets housing market will crash' (Jan. 19)

Dear Editor:

History teaches us about economic cycles that come and go with regularity. It takes years to occur and come on s-l-o-w-l-y, step by step, and you know why business is less. The so called "housing bubble" is only a sign of low interest rates and overwhelming demand that you expect to diminish in time with the return of higher interest rates.

Here in southern California I expect the population to double in the next 10-15 years. There is no more land available to build homes on in the Los Angeles metropolitan area. Land that looks like it may be available is not buildable because the locals do not want another "City of Los Angeles" to erupt in the area. So, looks like to me that demand will remain way up no matter if interest rates go up to 7 to 9 percent, or more. Only those who can really afford housing will continue coming. I expect the "bubble" to stay somewhat inflated because of the extreme shortage of supply and the inevitable population increase.

So, bring on all you people who want to come to sunny southern California. Come while you can find some entry-level condominiums because later I think the only housing you will find here is in high-rise condos, townhomes, lofts and whatever can be invented. Remember, that not so long ago Orange County was filled with agricultural production, as was the San Fernando Valley. Now take a look at the population count, pollution and traffic on the freeways and the beach-to-foothills development. Not a pretty picture, is it?

Bill Prieto
Broker associate

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