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CityWatch, July 2003
By Wes Wellman

With real estate values at all time highs, one naturally wonders about the direction of the market. For help I turned to the "experts." I had a sample of Santa Monica apartment owners surveyed about their opinions concerning the market.

The first question posed was this: "The prices for apartment buildings in Santa Monica are very high right now. Do you expect prices to remain at current levels, to increase or to decline?"

Of those owners surveyed, 58% said they expected prices to remain at current levels, 33% expected prices to increase, and only 9% expected prices to decline.

Of those who think prices are going to stay the same or increase, here is a sampling of their comments:

The supply of rental housing isn't keeping pace with demand.

Location, location, location.

I think we are going into a recession, but Santa Monica prices will increase.

There is not enough property in Santa Monica and everybody wants to live here.

Prices won't decline until interest rates increase.

Why? Do I have a crystal ball?

Stocks crashed. Everybody wants real estate.

It's the economy, stupid.

Just a feeling.

Santa Monica is still just a great place to live.

As more low rent apartments turn over, prices will go even higher.

These comments, although not exactly responsive to the question asked, are worthy of note:

I'm going to have to abstain.

I won't sell at these prices. Why shouldn't I try for more?

People who need an exchange or have tax issues are willing to pay exorbitant prices.

The market doesn't mean a *#$% to me.

There are people buying at these prices. I don't know why.
But, hey- good luck to them.

I don't own anymore down there- thank goodness.

I rather you put me out in the middle of the street, stark naked, even though I'm a middle aged woman, and whip me publicly, than buy again in Santa Monica.