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The Tale of Two Different Housing Markets

By
Real Estate Agent with Remax Realty 100

 

 

Last night I was reading a interesting article from The Atlantic, in a nutshell it breaks the housing market into two separate markets, one which home values have plateaued and the other where they are still dropping. Markets that values are stabilizing tend to be knowledge-driven metros, tech centers and bigger cities like Los Angeles, New York, Boston, San Diego, Chicago, among others. The Markets that still are likely to drop tend to be rust belt and sun belt bubble cities lacking what the stabilized markets have big metros, tech centers, ect. Cities in this category are Phoenix, Cleveland, Las Vegas, Atlanta, Detroit and also others. The denser metropolitan areas home values have not declined as much as the smaller metro areas for example Los Angeles has increased 176% compared to its year 2000 values in comparison Atlanta which is only up to 101%. A world of difference for home owners. If you plan on moving to small city you may want to take a second look at the larger, more knowledge-driven housing markets.

 

Joyce Herr
Prudential Lancaster Real Estate - Lancaster, PA
Lancaster County & Beyond

I don't know if that is true that "the denser metropolitan areas home values have not declined as much as the smaller metro areas".  I would argue that the reverse may actually be true.

Some smaller areas haven't been hit as hard with the housing price fluctuations as higher metro areas.  I haven't seen the article but would be curious to see what data collection methods were used.

Jan 27, 2011 10:18 AM