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Real Estate prices will continue to rise
“Over
the next half-century California’s population will explode
by nearly 75%”. The Los Angeles Times reported there will be
60 million Californians by 2050.
How will this affect home prices? The economic theory of
supply and demand dictates home prices will continue to rise
as there is a housing shortage to meet the burgeoning
demand. Orange County’s population is expected to grow from
2.9 million to 4.0 million, a 39% increase. With very little
room for new housing to be built existing home prices will
continue to rise.
I have put together the chart below by compiling Orange
County single family home prices from 1970 through 2006. As you will see
real estate has been a great investment over a period of
time. Case in point: In Beverly Hills a new listing has just
come on the market for $165,000,000. The home was originally
bought in 1947 for $120,000.
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