Professor Mark J. Perry's Blog for Economics and Finance
A previous CD post discussed the concentration of foreclosures in four states: AZ, CA, FL and NV. The chart above helps explain the foreclosure concentration: all four of those states had huge house price bubbles, and subsequent corrections/crashes. In contrast, states like Texas and South Dakota did not experience real estate bubbles, and do not have the foreclosure problems today of AZ, CA, FL and NV. 
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
2 Comments:
I live right outside of Las Vegas in Nevada. Even though housing prices have fallen over the last two years, they are still over priced here.
If you talk to realtors and/or investors you hear the same garbage they were spewing last year. "We have hit the botoom and in a year or two things will be back to normal."
They still don't get it. There has been a fundamental shift in real estate prices in Southen Nevada. Heck, there has been a shift in the entire economy. Every single "billion dollar" casino on the strip is in danger of boarding up the doors and holding a massive garage sale.
As hard as it is to understand, people still do not get it. There was so much excess built into the system that it will take many years for it to be worked out. Housing is but just one of the segments that need a decade or so to come back to normal.
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