East vs. West: Housing Market Divide

Home prices in the West are falling while prices in the East are still posting annual gains, creating a geographical disparity that is highly unusual, according to housing analysts. The West Coast, which has enjoyed long price run-ups since the 1990s, is seeing the fastest falling home prices, while Florida and other Southern markets are still attracting companies and adding jobs. Economists expect home prices to fall further on an annual basis this spring or summer, as Western markets continue to slide and some Eastern markets start posting year-over-year declines.