Sand is not a good foundation for a house, and it certainly wasn’t a good foundation for a housing boom. But now home prices are starting to recover in some so-called sand states. During the housing boom early in the last decade, the strongest markets were in the states that could offer sand and sun to lure prospective purchasers, and many came to accept that the aging of the baby boomers meant that such retirement havens would prosper forever. But when the boom turned to bust, buyers found that what went up the most was likely to come down the fastest. Now, there are signs of life in real estate markets in two of the sand states, California and Arizona. Florida and Nevada, though, continue to suffer.
By Floyd Norris, April 2, 2010 NYT

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