Bay Area Real Estate Market
Many markets in Orange County barely corrected during the bubble
collapse. Many of the most desirable markets are already selling for
more than peak values due to the stimulus intended to revive the rest of
the national market. This will be the story over the next few years as
some markets inflate mini-bubbles in reaction to stimulus while some
markets languish under the weight of shadow inventory liquidations. Over
time, the substitution effect will kick in and the markets will
reestablish the equilibrium they once had prior to the housing bubble.
Of course, that assumes politicians stop stimulating and manipulating
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