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Tuesday, March 01, 2011

Housing: Governors are not immune to the housing bust

by Calculated Risk on 3/01/2011 09:03:00 AM

Note: At 10 AM, the ISM Manufacturing Index for February and Construction Spending for January will be released. Also Fed Chairman Bernanke provides the Semiannual Monetary Policy Report to the Congress (Senate testimony).

From Ted Nesi at Governor Chafee has a house he’d like to sell you

[Gov. Lincoln Chafee] and his wife, Stephanie, listed their seven-bedroom, three-and-a-half-bathroom house on Providence’s East Side last week for $889,000.

The Chafees purchased the house for $939,000 in 2006 ...
So he is asking $50,000 less than he paid. Case-Shiller doesn't track Providence, but house prices have fallen about 15% in Boston and 22% in New York - and prices have probably fallen at least 10% in Providence. So I wouldn't be surprised to see a price reduction.