Thursday, June 19, 2008

An Update on House Price Dynamics in Beverly Hills (Zip Code 90210)

We keep hearing about the housing price meltdown. www.zillow.com has some facts about the ritzy 90210 zip code on the west side of Los Angeles (1 mile east of UCLA). You can double difference the data presented below. The blue line presents time trends over the last 5 years in average home prices in 90210 while the red line presents average home prices in Los Angeles county. I see divergence big time. What will President Obama do about this inequity? Is this just a bubble? Have you sold short your shares in Beverly Hills real estate?

3 comments :

Anonymous said...

Matthew, nice post but inaccurate comment at the end. "Have you sold short *your* shares in Beverly Hills real estate?" If you want to short-sell shares, you have to borrow them. If you sell your own shares, you are simply selling, not short selling.

Seth Roberts said...

If you plotted the data using a log scale for price, it would be clearer whether Beverly Hills prices have risen disproportionately. The way you've plotted it makes it hard to tell.

Gprofessionals said...

Here from the graph we can analyze that just before the global recession the increase in home price was steady, but then it immediately increased and with the start of the global recession it falls down to the lowest level in four years. I can not understand this co-relation between house prices and global recession.
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