During the boom period from 2000 to 2006, home prices more than doubled in the Poughkeepsie area and increased by 150 percent around Kingston – exceeding the U.S. rise of roughly 90 percent and the average rise of roughly 50 percent that prevailed in our region. The price declines in the bust period, from 2007 to 2009, were somewhat less severe than the nation, falling by roughly 20 percent in both areas, compared with 30 percent nationally. Recently – and this is a hopeful sign – home prices in both areas have steadied. Next, how are families in the Hudson Valley doing in restoring their finances? During the recession, all across the nation, debt delinquencies soared and many families found that they needed to reduce their debt to a sustainable level. We keep track of the credit conditions in the Second District – including the average debt that people in area carry and whether they are current with their payments – using the Federal Reserve Bank of New York’s Consumer Credit Panel. In the Hudson Valley, debt per person with a credit report is now down by 5 percent from its peak level in 2008. As of the first quarter of this year, debt was continuing to fall modestly. At the same time, delinquency rates continue to rise. The proportion of debt that is at least 90 days delinquent has risen from 2 percent in 2005 – which was low for New York – to 9 percent currently, matching the delinquency rate statewide.
I will now be happy to answer some questions. 6  BIS central bankers’ speeches