Just wanted to post a quick chart I ran across (thanks SF Fed) that neatly summarizes some of the domestic housing bubble issues and touches a bit on how that was affected by planned communities (and perhaps the New Urbanism trend in selected locations). When you think about mass-construction planned communities, developments that have billboard advertisements and have phases and are sold as much as investments as homes, what areas of the county come to mind? Florida, certainly. Cheap land in the southwest. The suburban areas surrounding DC and Baltimore in the mid-Atlantic. Bad adjustable rate mortgages funded the majority of these new purchases, as demonstrated:
So there you go: Florida, the southwest, the mid-Atlantic. Michigan is a surprise to me, but I don't know much about that state outside of Detroit's economic issues (which, given their real estate prices, could theoretically account for the entirety of the principal-value delta statewide).
I am also stunned that Texas is in relatively good mortgage health. I'd have figured it was in the same expansion and development boat as Arizona.
No comments:
Post a Comment