What do California, Arizona, Nevada, Florida and Michigan have in common? In just about every indicator of economic pain, those states not only top the list but take up much of the top ten. California and Florida have the worst foreclosure rates and credit card debt, Nevada has the worst drop in home prices, Arizona has the worst drop in unemployment and Michigan is the overall jobless leader with a 14 percent unemployment rate. June's home price numbers are out (from Case-Schiller) and guess who leads the pack, again?
This chart lists the worst year-over-year change in average home prices in the following metro areas. The first five metro areas are from, respectively, the Formidable Five: Arizona, Nevada, California, Florida and Michigan.
In the top 9 worst metro areas for home price decline, only one -- Minneapolis, MN -- comes from a state not listed above. It it truly remarkable to me that although this recession is unquestionably national in scope, there is a considerably deeper recession within a recession in these states, which is apparent is almost every indicator of economic stress.