Monday, October 20, 2008

Housing Markets that May be Ready for a Turnaround

According to this article, these cities may be ready for an improved housing market:
  • Philadelphia
  • Raleigh
  • Seattle
  • Des Moines
  • Birmingham
  • Salt Lake City
  • Denver

In October 2005, near the peak of the boom, the median sales price for a U.S. home reached 7.3 times per capita income; by this May it had fallen to 5.7, in line with historical norms. Nationally, the rate of decline in sales is slowing, and in some regions sales numbers have actually perked up. "The indicators are starting to look better," says Adam York, an economic analyst with Wachovia.
Why the disconnect? For starters, the national sales figures that get so much attention -- and remain depressing -- are brought down by boom-and-bust markets like Las Vegas, Miami and Phoenix. David Berson, chief economist with mortgage insurance firm The PMI Group, says that if hard-hit states like California, Arizona, Nevada and Florida are taken out of the statistical mix, the picture is much more promising.

No comments: