Today in Los Angeles Real Estate News...

The federal Governement's takeover of Fannie Mae and Freddie Mac may result in 30 year fixed mortgages dropping all the way to 5.5%. This will be very supportive of real estate prices nationwide. In CA, many have called for an additional 20-25% drop in home prices prior to the bottom based on oversupply, new foreclosures, and plain old cyclical market adjustments back to reality. But maybe the real reason that prices could drop a bit more is because....

You can trade 1 home in California for 13 in Iowa

By Gregory J. Wilcox, Staff Writer - LA Daily News

Article Last Updated: 09/09/2008 09:41:34 PM PDT

Home prices might be plunging across California, but the Golden State still dominates the nation's 10 most expensive housing markets.

California accounts for eight of America's 10 priciest places to buy a house, according to the Coldwell Banker Home Price Comparison Index released Tuesday.

Topping the list is the tony seaside enclave of La Jolla, where the average sale price for a 2,200-square-foot house so far this year is $1.8 million. That's 13 times more expensive than the $133,459 average price for a same-size home in Sioux City, Iowa, the most affordable market.

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