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One possible basis for the commensurate appreciation rates may be an artifact with the relative price points for every city. In Redondo Beach, the typical single family home sold at under $450 K during Manhattan it absolutely was almost exactly $900 K. In 2009 through this past month, the typical price tag in Redondo has jumped to $830 K also to less than $1.7 M in Manhattan. I thought this could appear as being a transfer of demand with fewer homes for sale for the higher end, but this happens to be only a small part in the story. The quantity of single houses bought from both cities dropped by 50-55 percent from 2000 to 2009 through November.

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For example, waterfront property usually commands a greater price than houses built miles inland. Similarly, a house in Beverly Hills may command a higher price than home of a similar size located in the heart of Los Angeles. During the most recent recession, prices of houses in good locations declined by a smaller proportion than other properties.

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