TRANSPARENT REAL ESTATE: Market bifurcation everywhere

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Market bifurcation everywhere

Posted by Pat Kitano at 11/21/2007 8:03 AM

NAR reports this morning that housing prices increased in 62% of metropolitan markets in the US. This statistic confirms market bifurcation on a national scale that is also mirrored across regional and local markets:

Market Bifurcation	Stable	Suffering
National scale	Regions primarily between the Coasts that didn't experience the housing boom	High demand regions - California, Florida - where housing prices boomed along with building starts
State scale (California)	High demand cities with strong economies - Silicon Valley, Los Angeles	Overbuilt exurban regions - Central Valley, Inland Empire
Local scale (San Francisco Bay Area)	Cities with strong economies with little subprime exposure	Cities where speculating investors and subprime buyers bought in anticipation of an expanding economic base around the Bay Area, Los Angeles and San Diego
(Global scale)	Countries hit by housing price acceleration, fueled by loose lending standards - US, Britain, European countries	Asia housing prices boom while Europe moderates (10/1/2007)