Cities in the "Sand States" of Florida, California, Arizona and Nevada, where overbuilding was rampant, are also in trouble, claiming nine of the top 10 spots in our list of cities in free fall. In Las Vegas, Riverside, Calif., and Phoenix, median home prices have fallen 50%, 44% and 37% from their respective peaks. Jobs are vanishing. Though country-wide, employers added 162,00 jobs last month, Riverside gained 13% fewer jobs in February 2010 (the latest numbers available by metro) than it did the same month three years earlier. Tampa, Fla., saw a 10% drop, and Los Angeles added 9% fewer jobs over the same time period.
These cities are also slow to absorb their glut of unsold foreclosed homes, keeping recovery at bay.
"These were highly speculative housing markets," says Jonathan Miller, president of Miller Samuel, a Manhattan-based real estate appraisal firm. "In the markets that have unloaded a lot of foreclosed housing stock there's still a lot more coming."...
... "In California, so many jobs were concentrated in construction," says Michael Fratantoni, vice president of research at the Mortgage Bankers Association, the professional association for real estate financiers. "Jobs building single family homes wound up not being sustainable, and there were a lot of job losses."
Thursday, April 15, 2010
Foreclosures, that is. Via Ace, the 1st quarter foreclosure rate was astronomical. More here. Been following this for quite some time, though I haven't posted much in recent months about the housing market trend. This doesn't bode well for sellers (whether individual home owners or banks), or for those who are way over their heads in mortgage payments. But, here in California, housing prices are STILL too high from the '98-'06 bogus boom that more than tripled in value. For someone like myself who would like to one day be able to buy/mortgage my first home, the market during the next 1-3 years will be good.
UPDATE: More here, with a focus on Ventura County, CA, and the Top 4 states: