The housing market is still very regional. I know areas out here in Nazifornia where it is still unbelievable. With the increase in interest rates and changes in many parts of the economy, the realestate investor types who were buying houses simply to flip them a month or two later have been buying fewer of the homes. Supply of new homes has also been catching up with demand. A lot of people were refincing consumer credit debt (credit cards) on their homes based on the rapidly increasing value and the low interest rates. Now that the rates are up and the rapid valuation is slowing, some of these less responsible home owners are now forced to sell which is also increasing the supply of houses on the market. In some areas such as the old Rust Belt where Cat lives the layoffs by the Automakers and other manufacturers is puting more homes on the market which is really softening the prices. Areas along our central and north coast in Nazifornia are still very strong as well as areas in the interior of the state. The cost of houses in the interior of the state are directly correlated to those on the coast and in places like the Bay Area. If those prices continue to be stable the ones in the interior will remain stable or go higher as people flee the high priced areas for the bedroom communities. We even have a proposal locally to build a complete new planned community. From our county's planning department web site we read, "The proposed Quay Valley Ranch project involves the development of approximately 12,000 acres of agricultural and other open space land into a new community. The proposed project will include residential, commercial, light industrial and recreational/visitor-serving land uses."

So the entire market isn't completely in the hole. There are patches here and there where values are increasing and the housing market is still hot. There are other areas that are staying stable and there are some areas that are experiencing a down turn or even a severe downturn. I would expect sales in the South East to remain firm with many companies relocating or setting up the more business friendly south. On the flipside, I think the Rust Belt will continue to see declines for the foreseeable future.

Jason Orton
Bountiful Economic and Mirth Advisory Chair