Archive for January, 2007

I Love What You Do For Me - San Antonio?

Monday, January 29th, 2007

The recent opening of the new Toyota Tundra plant in San Antonio has helped San Antonio’s economy to continue to expand and helped fuel the hottest housing market in Texas. However, the retail sector is experiencing a slowdown and there is beginning to be some concern about overbuilding. Will the San Antonio housing market continue to be as hot as Texas summer or will this latest boom turn into another oil bust?

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A slowdown in Philadelphia

Sunday, January 28th, 2007

After 5+ years of strong price growth the Philadelphia market has seen sales and prices slow rapidly in 2006. Additionally, many locals worry that Philadelphia is becoming nothing more than a commuter town for New York and New Jersey. Will local officials be able to strengthen the local economy and in turn housing or will home prices repeat the prior downturn of seven years in which nominal prices stagnated and real prices fell over 20%?

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A foreshadowing of California?

Thursday, January 25th, 2007

After an 18 year period in which real prices were nearly cut in half, Houston prices have mounted a steady run of price increases. Although the local economy has lost a bit of steam as of late, housing growth is still strong compared to most of the nation. However, Houston is the only major US city with a negative historical real growth rate over the past 30 years. Will local economic strength continue to power the housing market or will history repeat itself?

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Struggling in the Rust Belt

Wednesday, January 24th, 2007

Cleveland’s economy is still floundering as it relies upon the dying domestic auto manufacturers. The poor local economy has begun to hurt consumer spending and has poured over into the housing market. However, Cleveland is attempting to lure new biotech industries with its tremendously low cost of living. Will Cleveland be successful or will it continue to follow in the footsteps of Detroit?

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Charlotte - Q3:2006

Tuesday, January 23rd, 2007

Charlotte is a city with a wide range of appeal - from the scientists at the local Research Center to NASCAR enthusiasts at the Hall of Fame. This appeal has lead to positive migration and economic trends. However, several local textile firms have become exposed to the rapid increase in Chinese exports. Will the market continue its success story of never having a negative year in nominal price or will 2007 start a new trend?

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The two stories of Minneapolis…

Monday, January 22nd, 2007

Minneapolis has been a city with two stories. On one hand growth economic growth has nearly doubled the pace of last year. However, on the other hand building permits have continued to slide since their 2004 peak. Will the future headquarter expansions of Target and Best Buy keep the local economy and real estate market chugging along or will housing revert back towards the historical mean?

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The first American city to die?

Sunday, January 21st, 2007

Several US manufacturing cities have seen population declines over the past few years, however, no US city has seen the economic deterioration of Detroit. During a time when national prices experienced record price gains, Detroit real home prices were actually higher six years ago than they are today. Will the restructing of GM & Ford keep this city alive?

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Tampa, FL - Q3:2006

Thursday, January 18th, 2007

Strong population growth has powered the Tampa economy to new heights. Additionally, unlike many other Florida cities affordability has remaned more in line with national trends. Will however the recent increase in mortgage defaults and the ever looming hurricane risk blow away the earnings of years past?

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Too Much Gambling in Reno?

Wednesday, January 17th, 2007

The Reno housing market has shot up the past few years like a gambler on a rush. However, Reno investors may have pushed prices too hard and too fast thanks in large part to negative-amortizing mortgages. Will these gambles pay off or was this a ponzi scheme that has run out of players?

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The New High Tech Haven - Boise, ID

Tuesday, January 16th, 2007

Tremendous growth in the high tech sector has been driving the Boise economy and local home prices. Additionally, strong demographic trends and local income growth paint a rosy picture for Boise. However, have the recent excesses in new construction and investor activity pushed the recent growth too far?

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