Tuesday, June 28, 2005

Housing: FDIC and California

by Bill McBride on 6/28/2005 07:57:00 PM

According to the article in the previous post:

Today, the agency will release new state-by-state economic profiles. Taken together, the profiles conclude that most booming U.S. housing markets are sustained by strong growth in new jobs.

"In general, that is where home prices are rising most rapidly," said Barbara Ryan, associate director of the FDIC's research division.
Here is the California profile and two graphs.

Click on graph for larger image.

Job growth in the bay area and southern California trailed the rest of the Nation.

Price appreciation outpaced income growth.

The data for California does not seem to support the FDIC's conclusion.