Rise and Fall

Did huge price gains in the housing boom make for a deeper dive in the collapse?  Now that we can confidently say we’re past the bottom and the housing bust is behind us, we can answer this question with the data.  The chart shows the peak index value on the horizontal axis and the percentage drop on the vertical axis for each of the 20 cities plus the 10 and 20 city composites. The cities are labeled, the composites are identified as “10” and “20.” The results are clear — there is a strong tendency for cities like Phoenix, Las Vegas and Miami (all in the lower right corner) to plunge after their outsize gains.  At the other end of the diagonal in the upper left corner Dallas, Denver and Charlotte saw modest increases and modest declines.  Were the pattern perfect, all the cities would lie on the diagonal; there are probably other factors that affect the depth of the decline. (Click on chart for larger image)Rise and Fall

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3 Trackbacks

  1. By Rise and Fall | S&P Dow Jones Indices - Hou... on May 2, 2013 at 10:16 am

    […] Did huge price gains in the housing boom make for a deeper dive in the collapse? Now that we can confidently say we're past the bottom and the housing bust is  […]

  2. By cmslandscapeservices.com on May 8, 2013 at 7:25 am

    cmslandscapeservices.com…

    I’m a big fan of this blog and I check it regularly. Keep up the great work!…

  3. […] Dallas among the safest Cities to invest.  Source: http://www.housingviews.com/2013/05/01/rise-and-fall/ […]

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