New Analysis of 130 Markets by NAR (National Association of Realtors) Research Shows No Support of a Housing Bust.

NAR’s downloadable 10-page reports show that the facts simply do not support the possibility of a housing bust — not for the 130 markets researched and not for the nation.

Executive Summary for the Los Angeles area
With home prices rising strongly in most parts of the country, there has been widespread media coverage on the possibility of a housing market bust. A thorough analysis of the Los Angeles-Long Beach-Santa Ana metro market, as detailed below, reveals that there is little danger of this. In fact, the local housing market is in good shape with a potential for significant housing equity gains, particularly for homebuyers who plan to remain in their house for the long run.

Low Foreclosure Risk
Only 6% of the loans in the Los Angeles area have loan-to-value ratios above 90%, so the foreclosure risk is rather minimal. (That is, prices would have to decline by more than 10% to have a measurable impact on foreclosure rates.)
Click here for the full Los Angeles area report.

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