Posted on 01/07/2011 12:17:18 PM PST by JerseyHighlander
Executive Summary:
The “Great Recession” of 2007 to 2009 has taken a great toll on housing markets in most cities and metropolitan areas in all parts of the country. Though the pace and extent of the overall economic recovery of these markets is still far from certain, many places will likely resume growth and fully recover within the next decade or so. This is almost certainly not to be the case for all metropolitan areas. In fact, a number of large metropolitan statistical areas (MSAs) experienced severe recessions during the latter half of the 20th century and prior to the Great Recession and never fully recovered or took many years to do so. Even among those metro areas with relatively bright long-run prospects for growth, certain submarkets within them may remain well below recent house price peaks for many years to come.
Note that this is from the real estate whores at Mortgage Bankers Association, so take with appropriate grain of salt.
MSM article on the report: http://www.ibtimes.com/articles/98260/20110106/ghost-towns-housing-collapse-will-result-in-new-types-of-declining-cities.htm
"Some neighborhoods are going to suffer tremendously or are never going to come back or come back very, very slowly," said James R. Follain, senior fellow at the Rockefeller Institute of Government and author of the study.
...
“There are certainly neighborhoods and submarkets within metro areas that have passed a tipping point, and have little prospect of returning to anything close to their previous peaks,” the study noted.
“Another type of declining city may also be emerging — places that grew substantially during the housing boom and are now experiencing unprecedented declines in house prices and increases in foreclosures.”
The report especially focuses on Stockton, California, which is a particularly striking case of a city that at first flourished then collapsed as a result of the housing boom and bust.
“Stockton… had been among the fastest growing areas in the United States until the Great Recession and now it is among those areas particularly hard-hit by the crisis,” the study noted.
hotlinks:
THe report can be downloaded directly in PDF format here: http://www.housingamerica.org/RIHA/RIHA/Publications/75154_10296_Research_RIHA_ShrinkingCities_Report.pdf
Note that this is from the real estate whores at Mortgage Bankers Association, so take with appropriate grain of salt.
MSM article on the report: http://www.ibtimes.com/articles/98260/20110106/ghost-towns-housing-collapse-will-result-in-new-types-of-declining-cities.htm
“Decline” sugarcoats what has been happening for decades in some cities, and now in some states.
Civilization is in reverse gear in much of America. Reversals have happened throughout history in various forms. They all have one thing in common; they were self induced; no foreign invader was needed to plant the seeds of societal rot.
In CA with Jerry Brown looking to damage the old Prop 13 and to raise fees and taxes, I can’t see that helping values of homes, only making more people lose homes or moving out of state.
We have not yet hit the bottom and the Mortgage Bankers Association are making forecasts that “many places will likely resume growth and fully recover within the next decade or so”.
Or so what?
I’m a thief and a whore but I will fully recover within the next decade or so. Yeah, keep talkin’.
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