Monday, April 19, 2010

Cleveland Re-Busting!

Today we welcome Cleveland as the latest entry in the “re-busing” series as the Radar Logic data for this metro housing market is showing the tell tale signs of government propping fatigue.

Although Cleveland is a very seasonal market with typical spring and winter swings in price, 2009 brought an exaggeration of the typical pattern with an exceptional early summer spike as well as vibrant run up into the November 2009 tax credit expiration.

Yet, as is becoming now very obvious, the government meddling only granted a temporary reprieve to those banking on price stability.

The price decline resumed in earnest once all the hoopla over the home buyer tax credit expiration blew over and prices have been down ever since.

In fact, Cleveland area home prices are now sitting at over a decade low some 32.76% below the level seen at the peak during 2005 and down 12.29% since just last year.

5 comments:

  1. Dagger12:29 PM

    There's something else going on here. Cleveland didn't experience much of a bubble at all, maybe 8% per year appreciation, and now they're crashing down to below 2000 levels?

    Maybe Cleveland's a milder Detroit, suffering a long-term decline in a dominant industry?

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  2. Dagger,

    I wish I had more data... I'm thinking that Cleveland was no bubble metro but still saw extra appreciation during the boom.

    Now they are stuck with both the issue you cited (old dying manufacturing industry) and credit/housing calamity (albeit to a much less extent then the big bubble metros)

    Detroit and Cleveland do look pitiful though... something is seriously gone wrong.

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  3. Dagger3:27 PM

    Yeah, it's sad. I suppose it's related to all our manufacturing being foreign outsourced. Which seems a long-term trend, although I wish it were happening a little slower.

    Somehow the banking crisis and the loss of manufacturing seem morally related. I wonder if anyone's come up with a model that supports that.

    Maybe I'm just being sentimental and soft-headed.

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  4. Dagger,

    No way your not being soft-headed its definitely related.

    Look at the manufacturing data since the mid 90s and anything that reflects fiancialization or consumer debt over the same period.. I think it will be telling.

    It as if significant global trade liberalization was formulated simultaneously with a new export of complex financialization.

    It all goes hand in hand with the switching over to a supposed "knowledge-based" or "services-based" economy.

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  5. Anonymous9:54 AM

    Lets get real the blacks tore apart detroit and now its clevelands turn. Ya ya say what you want but the truth is hard to swallow
    not all of us are blind

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