Though the “R” word has been on the tip of everyone’s tounge for the nation, today MSN posted an article stating that both California and Florida (two of our largest US economies) are pratically in a recession. The primary factory is contributed to the continuing declines in both the number of home sales and sale prices:
“Existing home sales fell 36 per cent in California and 30 per cent in Florida in the year to November 2007, against a national decline of 20 per cent. Median sale prices fell 12 per cent in California and 10 per cent in Florida, against only 3 per cent nationwide.
Both states have large inventories of unsold houses. Florida has a huge excess of condominiums and rising insurance premiums, while California is uniquely vulnerable to the dysfunction in the jumbo, or large denomination, mortgage market.”
Click here for the full story from MSN Money…
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