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https://www.zerohedge.com/news/2019-04-05/biggest-home-price-cuts-are-these-10-citiesplus 208 comments, and counting.
–Dee
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Mike, I can’t give you a city by city account, and I try not to turn this forum into a political warzone. Just like the variations in actual inflation differences between major cities (per the Chapwoodindex.com website), there are differences between cities in how well their various local markets are doing, differences in how well or how badly cities are managed (eg., consider the reasons why so many people are fleeing California), how well or how badly legislation at all levels can make or tank a local economy, etc.There are also sometimes international events that make huge differences in some US cities, but not others. An extreme example would be the widening of the Panama Canal. That made it possible for much larger ships to bypass western coastal cities by sailing through the Canal and going directly to east coast markets. Things like that.
Then you have Federal financial effects. Fannie Mae and Freddie Mac change their rules ever so often. Federal legislation often affects some cities more than others. Then the biggie, the Federal Reserve, does its predictable decade-long “business cycle” by creating a whopping financial bubble that sucks a lot of investors in — until the Fed pricks that bubble so its insiders get much richers, while the majority lose their shirts.
Then at the international level, country after country is bailing out of the US dollar, as Kissinger’s 1971 deal with the Saudis to sell petroleum only for US dollars falls apart. As the dollar slowly loses international value, that will create all kinds of financial shocks.
The point is, there is not just one single cause. It’s a whole crazy quilt of ever-changing things, and it can be mind-numbingly complex to keep track. If you’re doing business in Atlanta, eg., forget about keeping track of what matters in Denver, and so on.
There! Did I cover enough ground without turning this into a political catfight? [grin]
–Dee
Dee,
Wow, maybe next time you could give half-a-thought into this? (wink, wink)
Seriously, I love the widening of the Panama Canal example you mentioned.
It sure helped make port cities like Houston and Tampa industrial sectors boom.
And with it — JOBS; the driving force behind residential real estate.I wonder what other events/projects/policies (like the Panama Canal) would help drive demand/supply.
Yes, this could be a LOOONNNGG discussion.
Thanks again for your advice,
Mike W
Mike, you asked about other possible examples of newsy events that could matter here. Here is a fascinating one, back in December of 2018:
https://www.nationalreview.com/news/feds-discover-largest-oil-natural-gas-reserve-in-history/
There — did I squeeze that into a “half a thought”? [grin]
–Dee
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