The Los Angeles Times published the “news” story, A tale of two housing busts: Why is California recovering and Florida still struggling? Now here is a newspaper with a story to sell, oops tell.
On page 1 of the story, you have:
But in the last year or so, California’s housing market, though still weak, has begun recovering, while Florida’s remains on the critical list.
There are several reasons for the difference, but many experts say a key one is the approach to foreclosure.
California keeps things less complicated and largely outside the courtroom, making it easier for banks to seize and resell homes. Like 22 other states, Florida requires that repossessions be approved by judges, which some argue provides extra protection for homeowners but can delay the process for months.
Other reasons they say. What could they possibly be? They give you two pages to think of your own other reasons. Then on page 3, they say:
Faster foreclosures are only one factor boosting California’s housing market. The industry has been buoyed by the state’s more diverse and dynamic economy, and the coastal cities didn’t get the kind of unrestrained development that Florida’s beachfront cities saw.
“The enormous amount of speculation that occurred in Florida certainly contributed mightily to the decline, whereas in California you never had quite the tremendous supply of condominiums, and certainly there weren’t as many along the water,” said Lewis M. Goodkin, president of Goodkin Consulting Corp., a real estate research and advisory firm in Miami.
“Prices jumped dramatically, and now people are buying for 50 cents on the dollar, and I still don’t think it’s a bargain,” he said.
Did I mention the trouble buying hurricane insurance in Florida while there has been no problem with earthquake insurance in California? I guess I didn’t, and neither did the Los Angeles Time.
Excellent point, Rene. I copied your comment over to my Politics Blog itself.
It’s amazing what you can think of when you say, “Here is a fact, what can be the reason?” Rather than “Here’s a reason, what facts can support it?”
ReneC left this comment on Facebook:
“I think a more fundamental reason is the number of 2nd homes is much higher in Florida than California. Who do you think were buying all of those condos along the coastline? Snowbirds that wanted to escape the northern winters that’s who. Crappy economy means 2nd homes are a luxury that many will do without and that just kills housing demand.
California’s real estate boom meant that folks were struggling mightily to buy their first home. That population is still there and will buy once the market drops to where they can afford it. This provides a foundation to the housing market that Florida lacks.”