Up Go Prices, Up Goes Inventory, Pop Goes Bubble

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Median sales prices are up, but sales volume is down in Southern California again, reports DataQuick News. Homebuyers in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties paid a median price of $480,000 in February, a 12.9 percent increase from a year ago. But only 19,905 homes (new and existing) were sold. That's a drop of 7.0 percent from February of 2005.

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"It's numbers like these that both bubble-theorists and market cheerleaders can pounce on to make their points. Reality is more mundane. The frenzy is behind us, we're in a new phase of the real estate cycle and what remains to be seen is how this cycle's end game will play out. We'll know much more when next month's figures are in," said Marshall Prentice, DataQuick president.

— The Boy in the Big Housing Bubble