Second Housing Bust Wave?

From Yahoo Finance:

“Prices in Seattle, Charlotte, N.C., and Portland, Ore., have hit their lowest points since peaking in 2006 and 2007. Denver and Minneapolis are nearing new lows. High unemployment and rising foreclosures are taking a toll even on markets that never overheated during the boom years”

Apparently, things aren’t looking too good.

“Home values are dwindling in nearly every American market. Prices fell in November in all but one of the 20 cities in the Standard & Poor’s/Case-Shiller index released Tuesday. Eight of those markets hit their lowest point since the housing bubble burst”

Florida View

Interestingly, this coincides with other data points such as:

1. Americans dipping into savings on a nationwide scale for the first time in 57 yearsread more

2. 401(k) hardship withdrawals rising – read more

There are still MANY Americans who are not doing so well. I know that a lot of folks around Boston where I live, are insulated from this because the problems are not as widespread here. But in other cities, the pain is tremendous.

Richard Florida

It reminds me of Richard Florida’s work in studying what he calls the ‘Creative Class” – or those workers who work with their minds and use ideas. They can choose to live anywhere and it appears that only a few select American cities are drawing those people and those cities: Boston, NYC, DC, Seattle, San Francisco – are not dipping as hard or in some cases growing while other cities struggle.

How is it going in your city?┬áDo you see a split between “creative class” types and other workers?

Chris Grande

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