Although New York has been at the epicenter of the financial crisis, housing prices in the city haven’t droppednearly as fast as cities elsewhere. The same is true of the financial hubs of Boston and Charlotte, N.C.But that doesn’t mean these cities are skirting the worst of the housing bust. Rather, markets where price declines have been slightest may be in worse shape, because prices still have further to fall before enough buyers step in to bring housing activity to normal. Meanwhile, heavy foreclosure activity in hard-hit areas like Phoenix, Las Vegas and San Diego are bringing prices into equilibrium. Those cities may be closer to a turnaround.
By Justin Lahart and Conor Dougherty, Dec 31, 2008 WSJ