Tuesday, August 26, 2008

Housing Report

“Home Prices Drop by Sharpest Rate Ever”

Not really. As we have been tracking, cities that are not being inundated with new immigrants are seeing their real estate values rise, not fall. Dallas is an exception because of high oil prices. I do not have an explanation for Portland and Seattle, but their losses are negligible (0.2% for the month).

Cities Up
New York

Cities Down
Los Angeles
San Diego
San Francisco
Washington DC
Las Vegas

This is a good time to buy real estate in rural areas. Rural real estate is now safer than cash.


Kyle said...

I bought a house in Portland a month ago.

Prices skyrocketed over the past 3 or 4 years. Before that, they were very slowly increasing. In the past year, they have frozen, then slid, but in the solid middle class range, have stayed strong.

Most of the slide has been based strictly on the inventory available, with loans being harder to get.

Prices are holding to sliding, depending on the area and the asking price. They're much closer to where they should be, in my opinion. I don't foresee a crash, but rather a leveling effect.

I got a smoking deal and am in a house I'll be able to live in for 20 years. We needed more room, due to a growing munchkin, and to get out of downtown, so playing the "rent for a while to get a better deal later" thing would be a wash as I'd spend the money "saved" in rent for another year anyway.

George said...

If these lists of who is falling and who isn't are widely available, why are the mortgage banks STILL closing credit lines of customers in the areas which have hit bottom?

Strange fishy odor here.

Bill said...

Congratulations on the new house Kyle. And best of luck to your growing family. We just had our second. There is nothing better than fatherhood.

This is all about PC, in my opinion, George. It is forbidden to say that immigration lowers housing values.

Kyle said...

Bill, thank you! I agree - there is nothing like being a father. Congrats on your new addition.

r.e. PC, you're absolutely right.

I can tell you from experience that the demographic trends you mention are indeed tied in with areas where prices are still dropping faster around here.

We have plenty of immigrants in areas that are doing well... but they are not the demographic being addressed here.