Remember that article in the Los Angeles Times the other day entitled "Southland home sales and prices jump?" The sub-headline summarized the terrific news thus:
Thanks to the sage policies of these learned leaders, prices in Los Angeles County fell further, even as values shot up all around. Take a look at the actual numbers from Data Quick:
The value of the average home in Los Angeles dropped 1.6% at the same time that the value of the average home in Orange County rose 2.4%. Riverside was up 4.1%; San Diego, up 3.2%; and so on. Ventura dipped .1%, but the average home there is worth $360,000, far north of the $315,000 average for L.A.
How much money are we talking about? Look at the first line of the chart. You'll see that, on average, the Philosopher Kings' policies cost each of the 7,496 people who sold their homes at least $5,000, which translates into a group loss of $37,480,000, i.e., over $37 million. And that's just the people who sold, as opposed to the hundreds of thousands of homeowners like you and me, who just saw our net worth sink.
Plus, if those homeowners' values had gone up, say 2.4% instead of down 1.6%, each would have netted an extra $7,680 (= $320,000 per home x .024), which would have been a group gain of $57,569,280 (= 7,496 houses x $7,680). Thanks so much, City Hall.
Why are home values going down in L.A. while rising in surrounding counties? Hint: it's not something in the soil. Further hint: it's not something in the water, or the air. Rather, it's something in City Hall: a collection of career politicians who routinely rob Peter (you) to pay Paul (their corporate and union patrons). Crony capitalism drives employers out of this City, and drives down the value of your real estate. That is part of the "tax" you pay for ignoring local politics.
Nor is this the only pain the Philosopher Kings inflict on our local economy. As you know from past posts (e.g., in April 2012), they have consistently "achieved" an unemployment rate far higher than surrounding cities and counties. If they had done just an average job -- average, mind you, not above average -- then over 98,000 of the unemployed people in this City would have jobs.
If you want your property values to go up, like those of everyone else in Southern California, and you want the unemployment rate to go down, then you have to take action. You have to help replace the Philospher Kings with new people, people who live here in the real world. You can make a very nice start by contributing $25 to the campaign of Kevin James for Mayor.
Here's what the cheerleaders who wrote the headlines didn't tell you: while prices are up in "Southern California," they continue to sink in the territory controlled by the Philosopher Kings of Spring Street, namely, Mayor Antonio Villaraigosa, his wanna-be replacements, Eric Garcetti, Wendy Greuel, and Jan Perry, and let's not forget Dennis Zine, who wants to be City Controller.
Sales increased 21% in May in Southern California, with prices up 5.4%. Factors behind the rebound include very low mortgage rates, an improving economy and a belief that home values are near bottom.
Thanks to the sage policies of these learned leaders, prices in Los Angeles County fell further, even as values shot up all around. Take a look at the actual numbers from Data Quick:
The value of the average home in Los Angeles dropped 1.6% at the same time that the value of the average home in Orange County rose 2.4%. Riverside was up 4.1%; San Diego, up 3.2%; and so on. Ventura dipped .1%, but the average home there is worth $360,000, far north of the $315,000 average for L.A.
How much money are we talking about? Look at the first line of the chart. You'll see that, on average, the Philosopher Kings' policies cost each of the 7,496 people who sold their homes at least $5,000, which translates into a group loss of $37,480,000, i.e., over $37 million. And that's just the people who sold, as opposed to the hundreds of thousands of homeowners like you and me, who just saw our net worth sink.
Plus, if those homeowners' values had gone up, say 2.4% instead of down 1.6%, each would have netted an extra $7,680 (= $320,000 per home x .024), which would have been a group gain of $57,569,280 (= 7,496 houses x $7,680). Thanks so much, City Hall.
Why are home values going down in L.A. while rising in surrounding counties? Hint: it's not something in the soil. Further hint: it's not something in the water, or the air. Rather, it's something in City Hall: a collection of career politicians who routinely rob Peter (you) to pay Paul (their corporate and union patrons). Crony capitalism drives employers out of this City, and drives down the value of your real estate. That is part of the "tax" you pay for ignoring local politics.
Nor is this the only pain the Philosopher Kings inflict on our local economy. As you know from past posts (e.g., in April 2012), they have consistently "achieved" an unemployment rate far higher than surrounding cities and counties. If they had done just an average job -- average, mind you, not above average -- then over 98,000 of the unemployed people in this City would have jobs.
If you want your property values to go up, like those of everyone else in Southern California, and you want the unemployment rate to go down, then you have to take action. You have to help replace the Philospher Kings with new people, people who live here in the real world. You can make a very nice start by contributing $25 to the campaign of Kevin James for Mayor.
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