It’s 1989 all over again for home prices

This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.

In some parts of Southern California, home prices are now below 1989 levels. That’s right, back 20 years without adjusting for inflation.

Houses are selling for less than the cars some people bought with home equity loans during the bubble. These are real houses, not dilapidated shacks. Take this one on Mulberry Avenue in Lancaster:

Sold in April for $66,500

Sold in 2005 for $330,000

Sold in 1992 (new) for $130,000

Forecasts of how far back home prices prices will roll have been all over the map: 2002 (already there for Southern California), 1999, etc. Did anyone, anywhere, guess 1989?

-- Peter Y. Hong