LA & OC, we’re not special

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If you’re not from Orange County or Los Angeles you’ve probably never heard the refrain "People will always want to live here, we have great weather, the ocean, a kick-butt economy – we aren’t like other markets." It has become laughable. We do have all of those great things (hey, its the reason I live here) but that doesn’t make the area immune to the national lending and housing market. It also doesn’t provide justification for an asset bubble. But you still hear it, all day. "We’re different." The writing is pretty clear that there is no difference where you live, except maybe that in areas of over-valuation there will be greater loss.

From today’s OC Register:

Home prices in Los Angeles and Orange counties were up just 1 percent in the year ended in January, a price index from Standard & Poor’s and Case-Shiller says today. That’s the slowest rate of appreciation since February 1997 and a sharp decline from the 33 percent annualized gains seen in this cycle’s peak.

Local prices fell 0.5 percent between January and December. It’s the fourth straight monthly drop, the longest losing streak since 1997. By S&P’s count, regional prices are 1.9 percent below September’s peak.