Study describes
housing as ‘overpriced’
By Sophia Fischer
sfischer@theacorn.com

Ventura, along with 13 other California metropolitan areas, has been ranked among the top 20 overpriced housing markets in the nation in the May 2005 issue of Consumer Reports magazine.

Topping the list was Orange County, followed by the metropolitan areas and surrounding communities of Ventura and San Diego respectively. Other California communities on the list include Los Angeles-Long Beach, Santa Rosa, Riverside-San Bernardino and Santa Rosa.

A Massachusetts-based real-estate-consulting firm conducted a survey based on the historical relationship between housing prices and incomes.

Local reaction to the designation was mixed.

Douglas Tapking, executive director of Ventura County’s Area Housing Authority, agreed with the findings, saying it underscored the agency’s efforts to provide much-needed affordable housing to the community.

"Ventura County is a desirable place to live. It has a quality of life people desire, and, as a result, average working families have a very difficult time finding moderately affordable housing," Tapking said.

Prices also affect the ability of local employers to pay salaries that can cover the cost of a median-priced home, he added.

But Mike Plisky, president of the Conejo Valley Association of Realtors, while acknowledging the high cost of local housing, also questioned how the survey defined overpriced.

"Value is based on what a seller is willing to sell for and what a buyer is willing to buy for without being under duress," said Plisky, an agent with Aviara Real Estate in Westlake Village. "Value is not based on what you or I or anybody says. It’s the price people are willing to pay."

The high prices experienced by the local market are stabilizing, added Plisky. Part of the reason is that current inventory is not as small as last year.

"The number of homes available for sale causes people to panic and makes prices go up like they did," Plisky said. "We are not seeing that crazy appreciation we saw last year."

Plisky expects housing prices to continue appreciating by about 10 percent this year, as opposed to last year’s 25 percent. "I hope people will not read the headline and panic because the bubble is not bursting," Plisky said.