Thursday, June 19, 2008

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

We keep hearing about the housing price meltdown. 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?