Tuesday, April 28, 2009

Green Shoots of Recovery?

Over a year ago I listened to an interview with a real estate analyst from a major firm. His worst case scenario was the bulldozing of houses to bring supply and demand back into balance. This video indicates that in southern california at least, we're there.

The value of the houses to the banks that foreclosed has become negative with local zoning ordinances imposing fines on houses that are still unlivable but brand new.

I live near a big box strip mall that is now largely abandoned because of development problems followed by the developer's bankruptcy. I wonder how long before the municipality takes a similar route.

John Barnyak