Covering Your Local Economy: What's Happening with Housing

Marilyn Geewax NPR Senior Business Editor

In 2013 …

What We Will Explore Today

•  Demand Is Rising •  But There Are Big Regional Differences •  Foreclosures Are Very Uneven •  Real Estate Is Hyperlocal

Housing Sector Spins Off Jobs for Landscapers, Furniture Stores, Etc.

Things Are Finally Improving

Keep In Mind: You Might Be Completely Wrong

The slowdown in the housing sector “is a concern, but at this point we don't see it as being a broad financial concern or a major factor in assessing the course of the economy.” -- Fed Chairman Ben Bernanke Speaking to the House in February 2007.

Even Though You Never Really Can Predict – We Have

Reason For Optimism Because of Jobs

The Jobs Outlook Is Improving

http://data.bls.gov/timeseries/LNS14000000

Confidence Plunged Along With GDP, But It's Smoothing Out

Bureau of Economic Analysis data

Good Sign – Fewer Vacancies

A Very Good Sign

New-Home Sales Up Sharply from the Same Time Last Year

But Huge Regional Differences

•  North Dakota is booming, so home prices have shot from an average of $130,000 in 2011 to $180,000 now - Zillow Oil rig in Williston, N.D., by Flickr user

lindsey gee

Many Areas Are Still In Poor Shape •  Nevada is still struggling to bring back

jobs, so home prices remain depressed.

•  In 2008, the average house was $211,000. Now $153,000, according to Zillow Photo by Flickr user Thomas Hawk

Even Though You Never Really Can Predict – We Have

Reason For Pessimism Because of Aging Boomers

and Debt Overhang

As Boomers Downsize, Who Will Buy Their Houses?

As Student Debt Grows,

Less Money For Mortgages

Magic Wand Solutions

•  Wipe out student debt

•  Encourage immigration

•  Raze vacant houses

•  Create about 12 million jobs

•  Give workers raises

To Understand Your Local Market, Look At These Factors

Economic Fundamentals: Are Jobs Growing? 1.  How Many Foreclosures Still On the Market?

What's the Backlog? 2.  Are Investors Buying Houses?

Local Housing Data Can Be Found

at:

http://www.cbpp.org/cms/index.cfm?fa=view&id=1406

Questions? Thanks for coming!

Marilyn Geewax

NPR

mgeewax@npr.org

Twitter: @geewaxnpr

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Photo by Flickr user Xurble