December 27, 2007

Real Estate's Woes Spread Throughout Economy

Three recent news stories add additional anecdotal support to my argument that real estate's downturn negatively affects the broader U.S. economy:
  • A real estate brokerage in Phoenix shut down all of its 13 offices. The company's closure put 350 Realtors and 20 other employees out of work.

  • A federal agency forecast that economic growth in Manhattan will slow in 2008 as a result of Wall Street's subprime mortgage crisis. Local business owners now feel a "creeping sense" of uncertainty about the future, according to a newspaper report.

  • Tribune Co., which owns the Los Angeles Times and other media properties, reported that revenue from real estate classified ads dropped nearly 40 percent year-over-year in the four-week period that ended Nov. 25, 2007.

Ouch.