House price declines tied to job loss, says MetroTrends
For most of the metro areas in the “double trouble” group, the sharp downturn followed rapid gains in house prices and employment opportunities earlier in the decade. In fact, the bigger the boom, the harder the fall.
The double-whammy states of California, Florida, and Michigan have been clobbered. It’s difficult to see how they can return to their former economic power any time soon. The damage has just been too severe. And isn’t over yet.