Real Estate Markets are local

Posted by Greg Smith on Saturday, January 3rd, 2009 at 9:35am.

Over the holidays our family like many others gathered from all parts of the country to spend some time skiing in Steamboat.  We had a financial planner from California, a bond trader from Boston, a lawyer from Washington D.C. and two Realtors from Boulder, CO.  It was very interesting to hear the different spins on the economy and each person’s view for the year ahead.  As I listened it began to be very clear that each person’s perspective of the year moving forward was based on the year they had just experienced and that we interpret data through the glasses of the past.

 

One of Today’s top articles on Yahoo was "The Top 10 Worst Markets" and their predicted falls for 2009 based on the Standard Poor Case Schilling Home Price Index.  The article leads us to believe the sky is falling so I decided to take a look at the index across the country. As you will see from the chart below yes California is seeing some very strong adjustments, but areas such as Denver and Dallas are not experiencing double digit depreciation on an annual basis.  In fact the Dallas market is only down 3.04% over the last year and Denver is down 5.08%.  When you compare this to the 32% fall in Pheonix and the 19% drop for the top 20 market areas we need to remember to make sure we have the right pair of glasses on when we are looking at the year ahead.

https://www2.standardandpoors.com/spf/pdf/index/SA_CSHomePrice_History_123062.xls

 

Greg Smith

Leave a Comment