[lbo-talk] Ongoing housing market crisis data

[Chuck]

B. wrote:
> I opened the NYT this morning -- a lot of the main
> stories are about the housing crisis. 
> 
> The front page headline of the Times, today, in fact,
> was how now Home Depot might be in some trouble
> because of this. Most of the New York Times' "Top 10
> Emailed" news stories are about the housing market. 
> 
> I have been emailing friends, who know more about
> these markets than I, with the main concern about how
> this will ultimately -- or already is -- affecting the
> US working class.
> 
> Simple questions: How many families have already lost
> their homes? How many probably will? Will they be
> driven to rent? WHat do that mean for those of us who
> already rent?

Some snapshots from Kansas City:

* Some of you may have heard the NPR story last week about the Kansas 
City housing market. It correctly noted that Kasnas City, at least the 
upper and middle classes, have been enjoying one long economic boom for 
the last 25 year. Recent recessions haven't affected the Kansas City 
area. For KC to now be experiencing economic troubles is very newsworthy.

* Housing starts are down over 30% from last year. This continues the 
sharp decline over the past two years.

* Housing value is on the decline, also noteworthy because Kansas City 
does not have high housing prices nor has it been part of the bubble.

* A friendly source tells me that there is a 3 year glut of new condos, 
with more coming onto the market that were started several years ago. I 
haven't seen the figure on new condo starts (if there is one), but I 
haven't seen any new projects underway around the city.

* I've been to Home Depot quite a bit over the summer. The ones I've 
been in have been pretty empty.

* We've been remodeling a storefront over the summer for our infoshop 
expansion. We've probably had around a dozen guys come in and ask us for 
work.

* Neighbors up the street has been trying to sell their house for the 
last 4-6 months. They are just moving to another house around town. Last 
week they had the roof replaced, which is a sign that they are having to 
put more money into the house to sell it.

Chuck