How is the credit bubble affecting your city?

Two foreclosures sold

as well as another house, but another comes on the market whenever one is sold. Inventory is 6-7%, most of them for over a year and very slow moving.
Here in my 'burb of Seattle, the last "hot" market in the country, we just had a local builder file BK because his high-end condos weren't selling and he couldn't pay his construction loan.

There's a pretty good blog on our market here:

Seattle Bubble

Interesting graph of our increasing prices and decreasing sales follows. Looks like a classic case of demand falling as prices increase. And we know how that will end....

I remember going back to my small home town in southern Wisconsin in 1980; almost every house in the neighborhood was up for sale. But think about the reason: the neighborhood was built during WWII and most people bought there by 1948; most had either died or retired (mainly to Florida). Aren’t we already in or approaching another transition of that nature?

San Francisco:

Got an e-mail in late July from a 35-year-old, wife and two toddlers, giving new address. I may be the only one in his address book who knows for sure that the address is his wife’s mother’s condo. He’s in the construction business (cement I think) and in the past has had disability for injury but I don’t know the current story.

Thought it would never happen, the guy with the penthouse/spectacular view apt. in my building has given up his tenancy. He has worked out of the country for many years, was sub-letting and using it as an occasional pied-a-terre. Landlord had grounds for eviction but I don’t know for sure if he used them. Will be interesting to see how long it takes to remodel and re-rent it (that is if I don’t get the boot first).

The two-bedroom condo across the street is still on the market for $1,999,000 (down from $2,225,000), I think the RE agent has been on vacation the last two weeks; seems like they have been having open house every Sunday for months. I remember (was it 10 years ago) when the condos on my block were going for about $775,000 and I think that’s high enough.
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