Real estate is going back to being local in a big way, according to a new report from Kiplinger.
In an article titled ‘A Tale of Two Housing Recoveries,’ Kiplinger paints a picture of a nation where 30 to 38 states are having a meaningful recovery at the same that a handful of foreclosure-heavy other states are skewing the national stats in a bad way.
The small number of trouble states include Arizona, Florida, Michigan, Nevada and parts of California. Together, they represent the greatest share of problems in delinquent home loans and pending foreclosures.
Meanwhile, the Los Angeles metro area is just one in the nation that supports the ‘all real state is local’ recovery theory. The more inland you go, the more difficult the housing market gets. Closer to the coast, the neighborhoods are well heeled and values are rising again.
You see the same thing in the San Francisco Bay, Silicon Valley, Marin County and the East Bay. But then go more inland in the Bay area and there’s still a disaster unfolding in Sacramento, Stockton and Fresno.
Ditto in metro Atlanta where in-town values are rising again and in some neighborhoods there are shortages of homes for sale. Yet in other areas way out of town, recovery is remote at best.
So housing is going back to a sub-market concept and you shouldn’t be confused by all the stats, either negative or positive. All that matters is what’s going on in your community and your specific neighborhood today.