So are we really at the bottom of the real estate market? If we are can the market sustain the growth and how fast will it grow?

These questions generate many opinions and even more retoric. By the nature of the questions the only real amswer is no one knows. To know the answer is to know the future and any one who DOES know I want to take to Vegas.

However we do have some important data to look at to make a good guess so let's digg in.

First the real estate market historiclly moves in cycle's. Sometimes moving up and sometimes moving down. In must areas of the US the trend over time is upward. I live in Los Angeles so I will direct the majority of my comments towards the Los Angeles market.

Los Angeles real estate has increased in value much faster and to much higher levels than most areas of the country. This is largely due to the population growth and business growth. Simply put many people and business want to live in Los Angeles. Maybe it has something to due with the perfect weather.

Los Angeles was certinlly not imune to the recent global market crash. In fact Los Angeles was hit much harder than most areas because of the soaring values. But as the dust begins to settle there is still no question that the values continue to be some of the strongest in the country.

Foreclosures and short sales have created great opportunities for smart buyers.

OK now its time for some hard data.

• According to the The Case-Shiller index of 20 major cities home prices rose in August for the third straight month, a rapid pace of recovery that surprised economists and raised questions about how long the trend can last.

  After a steep three-year descent, home prices rebounded this summer at an annualized pace of almost 7 percent, the Standard & Poor's/Case-Shiller home price index showed Tuesday. Against a backdrop of rising unemployment and falling consumer confidence, the speed of the recovery stumped Robert Shiller, economist and co-creator of the index.

  "It's a time of exceptional uncertainty," Shiller said. "It doesn't seem like a time to see home prices booming, but that's what's happening." Southern California cities -- San Diego and, in particular, Los Angeles -- have seen notable gains, separating themselves from other Sun Belt cities, including Las Vegas and Phoenix.

• This is a recent headline from the Los Angeles Times "Southland home prices move north; The median rose for the fourth consecutive month in August, with a 2.6% gain from July to $275,000, data show." and further stated "although home values are still dropping in many neighborhoods, rising home sales and median prices are "all symptomatic of a bottoming out" and the worst days of the housing market are probably over, Leamer said."

• In September I showed a home buyer of mine 6 homes in a middle class neighborhood of The San Fernando Valley which is part of Los Angeles. He was a dream client of the 6 homes he told me any one of 4 of the homes we looked at he would be happy to own. Everything was great until I found out that all 4 of those homes had just sold with over 20 offers on each home. There are so many buyers in that market now that we had to write 10 offers before we where successful. And he paid $245,000 for a house listed for sale at $199,000. I can provide proof if you don't believe it.

So what do you think?

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