Housing slump hits strongest markets, too
Housing professionals like to say that residential real estate is all about location. I’ve heard from many Realtors that you have to look at individual markets when talking about the country’s housing slump. Just because sales are bad and prices are dropping in much of Florida, it doesn’t mean that things are equally as bad in Chicago.
A recent story by James Hagerty in the Washington Post’s online Real Estate Journal says that’s changing. Even previously strong real estate markets are now suffering from the housing slump. You can read the story here.
According to the story, the housing slump has finally hit the Pacific Northwest and North Carolina, two markets that had largely been immune to the problems in the residential real estate market. The story even mentions that Manhattan may soon seen its own version of the housing slump.
There is some good news in the story, though. The markets in Boston and Denver are still going strong, for instance. And Dallas held steady, too.
But the overall theme of the story is a chilling one for those hoping that an end to the housing slump is near: Housing troubles are still spreading across the country. It looks like 2008 is going to be another tough year for the residential market.
I think it has to do with economics in that area. Types of employment people have are of a higher income this can aid in avoiding a foreclosure situation. Most people in those areas have the means to purchase property and pay for it.
I agree with the above comment. There are certain parts of the country that are naturally more immune to problems such as foreclosures. However, the Real Estate Journal story did say that even these areas are beginning to see serious housing slumps, too.
Things are slowing down in other parts of the world including Asia, and even Singapore (though it’s still doing pretty well in terms of economic growth).
The US market is still pretty phenomenal when it comes to influencing the world.
Thanks, Benson, for your comment. It’s true that the U.S. housing market still has a big global pull. I think that’s changing, though. For the most part, I also think that’s a good thing.
I agree the US does influence the world. I see other countries speaking about their economic issues and real estate growth.