California has gone through many boom and bust cycles.  Since it became the 31st state in 1850 California has been home to many speculative manias.  An enormous population boom in the 1800s was brought on by the California gold rush.  Booms like this led to the rise of cities like San Francisco.  Los Angeles in the early 1900s found its footing as an entertainment hub and this led to massive expansion.  Since that time we have seen countless real estate booms and busts.

The current housing boom and bust cycle is the largest and most widespread in the state’s 160 year history.  As we look at historical data there is no lack of hyperbole when it comes to selling California real estate.  It would seem that every year is a good year to buy.  Of course as many are now finding out, timing is usually a bigger factor in determining housing success than investment savvy.

Full story is available on Dr. Housing Bubble