Jump to content
House Price Crash Forum
Sign in to follow this  
The Masked Tulip

Housing Crash Is Hitting Cities Thought To Be Stable

Recommended Posts

Seattle - which is a pricey place to buy just a few years ago looks like it is going down.

http://www.nytimes.com/2011/02/14/business/economy/14dip.html?src=busln

The rolling real estate crash that ravaged Florida and the Southwest is delivering a new wave of distress to communities once thought to be immune — economically diversified cities where the boom was relatively restrained.

In the last year, Seattle homeowners experienced a bigger price decline than in Las Vegas. Minneapolis dropped more than Miami, and Atlanta fared worse than Phoenix.

The bubble markets, where builders, buyers and banks ran wild, began falling first, economists say, so they are close to the end of the cycle and in some cases on their way back up. Nearly everyone else still has another season of pain.

“When I go out and talk to people around town, they say, ‘Wow, I thought we were going to have a 12 percent correction and call it a day,’ ” said Stan Humphries, chief economist for the housing site Zillow, which is based in Seattle. “But this thing just keeps on going.”

Seattle is down about 31 percent from its mid-2007 peak and, according to Zillow’s calculations, still has as much as 10 percent to fall. Mr. Humphries estimates the rest of the country will drop a further 5 and 7 percent as last year’s tax credits for home buyers continue to wear off.

“We went into 2010 feeling gangbusters, thanks to Uncle Sam,” Mr. Humphries said. “We ended it feeling penniless, with home values tanking.”

Edited by The Masked Tulip

Share this post


Link to post
Share on other sites

Seattle - which is a pricey place to buy just a few years ago looks like it is going down.

http://www.nytimes.com/2011/02/14/business/economy/14dip.html?src=busln

There was a lot of talk about Seattle riding out the storm which it hasn't. I don't think it will go down much further here, in the city, because inventory has fallen off a cliff recently. Buyers are complaining that there are no bargains left. It's been a fantastic opportunity to buy inside the city limits but there's a lot of money here too, so competition is building again. Anything half decent is being snapped up quickly. The city is full of big earners working for Microsoft, Amazon, Starbucks, Nordstrom, Boeing and various biotechs. Outside the city might be a different story. It all comes down to location.

Share this post


Link to post
Share on other sites

doesn't this tie in with the Alt-A mortgage resets? seem to remember a graph where they were all coming up for renewal around October, so add 3 months before a foreclosure notice and you get to now.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.