“Immune” no longer: Once seemingly resilient housing markets take hit in double dip
Is a Las Vegas-style housing meltdown about to come to a town or neighborhood near you?
That might have seemed absurd a year or two ago, but no more.
Now metro markets like Seattle, Atlanta and Minneapolis that were once thought to be "immune" from the worst of the housing downturn are starting to see big declines in prices, The New York Times reports. (Thanks Lance for pointing this one out yesterday.)
Yes, these were all markets that were so diversified and vibrant that many economists predicted they would escape the worst of the real estate downturn.
No more. Seattle prices have fallen 31 percent from peak - and may have another 10 percent to go. Things aren't looking much better in Atlanta or Minneapolis either.
Of course, no need to read between the lines. This is a great big warning about what may be ahead for Greater Boston, the king of the supposedly immune markets.
Let's face it - prices are particularly stubborn in the Boston area for a whole bunch of reasons that are open to debate.
While sales fell through the floor after the tax credit expired in April, prices weakened but held for months after, both in the Boston area and across the state.
It was only at the very end of 2010 that we started to see home values move into negative territory again.
Home prices dropped nearly 6 percent in December, hitting a median price statewide of $277,676, according to the Warren Group, publisher of Banker & Tradesman
This is a trend that is waxing, not waning, so we are likely to see prices plunge even more as we move deeper into 2011.
Does that mean we are headed for a Las Vegas style meltdown? The jury is still out.
But I would think twice now before saying it can't happen here.
