According to DataQuick Information Systems, Southern California home prices have still not burst, rising 23% in November from a year ago.

While the number of homes sold dropped slightly, area home prices were up at least 23 percent on the low end and almost 35 percent on the high end, resulting in a median home price of $415,000.

Areas that were initially depressed, particularly the Inland Empire, continue to lead the Southland in median home price gains. San Bernardino County led the area with a 34.6 percent gain, followed by Riverside County at 29.1 percent. Ventura County hit 25.8 percent, San Diego County 23.9 percent, Orange County 23.8 percent, followed by Los Angeles County at 22.7 percent.

There are; however, indications that the market continues to slow down. Most important, the stock of homes in the area has risen to a 3.5 month supply, up 88 percent from the same time a year ago.

The local housing market cannot sustain 20%+ gains in price according to most analysts. Nonetheless, most real estate experts predicted some bubble bursting many months ago. Most observers believe that the run-up can only be sustained by continued, historically-low mortgage rates.

Yesterday, the Fed raised rates for the fifth time this year, a trend which many believe will continue into next year. Still, mortgage rates have been impacted little by the small rate increases of the Fed. All things considered, this should ultimately, slowly, push mortgage rates up.

When, and how much mortgage rates rise is anybody's guess.

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