December Brings a Chill to Home States
Los Angeles Business Journal
By Max Zimbert
...Tracey Seslen, an assistant professor at the USC Marshall School of Business, said the county's residential real estate market will lag as long as unemployment is high.
"If we see manufacturing increasing, if we see retail improving - there's this whole chain reaction of things that need to happen," she said.
Seslen added that another critical factor in holding back a real estate rebound was a resistance by residents of affluent neighborhoods to drop their prices after paying top dollar during the boom. However, she believes the decision of some big banks to lift foreclosure moratoriums last month should add to the supply of affordable homes for sale - though that will soften prices.
The condominium market fared no better. The median price of a condo last month was $290,000 and 1,332 units were sold, figures on par with the last several months.