Recently, I was asked by Adam Kritzer of the Mortgage Calculator Blog to participate in a Q&A-type interview. That interview was just posted, and you can find it here. An excerpt:
Mortgage Calculator: It seems both the housing bubble and its bursting have been characterized by important regional disparities, so it’s not really meaningful to make generalizations on a national basis. Do you think that the recovery, whenever it cements itself, will also adhere to this pattern?
Absolutely. The areas to recover the first will be those that didn’t participate in the bubble in the first place, states like Texas or parts of the mid-West that still have sound economies. The next areas to recover will be those that did have price run-ups but also have relatively strong economies and have barriers to more building, which are mostly located along the coasts with the exception of Florida, which is a basket case unto itself.
What will take longer to recover are areas popular for vacation homes and those markets that have served as bedroom communities for larger job centers in places like Los Angeles or the Bay Area and require a commute. Here in California, that means the Central Valley, the low and high desert areas and much of the Inland Empire.