ANAHEIM HILLS

Buy now! They’re running of out land… on the moon

 ANAHEIM HILLS, NEWS
Mar 222013
 
Buy now! They're running of out land... on the moon

Most financial manias share a common belief that the supply of some precious resource is running out. The notion that they’re running of of land has sparked several financial manias. California has land booms and busts at various times in its history. Florida had a huge land boom and bust in the 1920s. Given the millions of acres of undeveloped land in California and Florida, particularly 100 years ago, the rationality of these booms and busts is rather suspect. But once people start to believe the shortage is real, the frenzy mentality takes over, and rationality is discarded in favor [Read More...]

Las Vegas: a case study in successful housing market manipulation

 ANAHEIM HILLS, NEWS
Mar 112013
 
Las Vegas: a case study in successful housing market manipulation

When housing bears made their case back at the peak of the housing bubble, they made assumptions about the application of the rules — rules that were subsequently changed. By the old rules, which served us for hundreds of years, when borrowers defaulted on their loans, banks were supposed to mark the value of the loans on their books to fair market value and record any losses. Under the old regime, banks would have recognized loan losses, foreclosed on the homes, and subsequently sold the properties to recover their capital and put that capital back to work. When the government [Read More...]

Will dwindling housing supply cause resale prices to rise or sales volumes to fall?

 ANAHEIM HILLS, NEWS
Jun 252012
 
Will dwindling housing supply cause resale prices to rise or sales volumes to fall?

As anyone watching the housing market in the Southwest in 2012 can attest to, inventory is falling. At its current rate of decline, there will be literally no houses for sale by the end of the year. We established that banks are cutting standing REO inventories by reducing new acquisitions by 50%. They are reducing their inventory by allowing delinquent borrowers to continue to live payment-free in houses. Of course the perpetual shadow inventory extends housing downturn and creates uncertainty, but lenders believe they can force house prices to bottom by restricting MLS supply. Perhaps they are right. The success [Read More...]

OC house prices are relatively payment affordable, but nothing is available to buy

 ANAHEIM HILLS, NEWS
May 102012
 
OC house prices are relatively payment affordable, but nothing is available to buy

For those planning on a long term of ownership, interest rates below 4% have made payment affordability the best its been in years, perhaps ever. The prices still seem ridiculously inflated, but record low interest rates make borrowing such large sums possible. Those low rates even drive the cost of ownership below the cost of comparable rentals, in some markets substantially below. It should be no surprise that many of the bubble-era communities and the less desirable older communities have prices well below rental parity. The less desirable communities always have a slight discount to rental parity, so when mortgage [Read More...]

What California can learn from Britain’s housing bubbles

 ANAHEIM HILLS, NEWS
Apr 112012
 
What California can learn from Britain's housing bubbles

California and Great Britain have much in common with regards to its real estate. California has witnessed three catastrophic bubbles over the last forty years as has Great Britain. Each bubble had different causes, but the timing was similar. California has strict land-use controls which creates artificial shortages of housing, and so does Great Britain. California’s economy has become dependent upon rampant HELOC abuse to fuel unsustainable booms and heart-wrenching busts. Great Britain endures the same real estate borrowing cycles of boom and bust. In this latest bust, lenders have not foreclosed on California’s mid- to high-end real estate keeping [Read More...]

Anaheim Hills payment affordability improved dramatically over the last year

 ANAHEIM HILLS
Mar 232012
 
Anaheim Hills payment affordability improved dramatically over the last year

Anaheim Hills Overview Median home price is $405,000. Based on a rental parity value of $549,000, this market is under valued. Monthly payment affordability has been improving over the last 7 month(s). Momentum suggests improving affordability. Resale prices on a $/SF basis increased to $237/SF to $239/SF. Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. Median rental rates declined $100 last month from $2,416 to $2,316. Rents have been slowly rising for 12 month(s). Price momentum suggests slowly rising rents over the next three months. Market rating = 6 Proprietary [Read More...]

US taxpayers about bail out California HELOC abusers

 ANAHEIM HILLS, NEWS
Feb 102012
 
US taxpayers about bail out California HELOC abusers

I found a new hero online: Steven Greenhut, vice president of journalism at the Franklin Center for Government and Public Integrity. As a fellow displaced Midwesterner, he was shocked and appalled at what he witnessed moving to California. He too is buying up rental homes in beaten down markets for the cashflow. He recently wrote an editorial on Bloomberg that is today’s featured article. Mortgage Deal Props Up California House of Cards: Steven Greenhut By Steven Greenhut Feb 9, 2012 8:06 AM PT Why should a taxpayer in Houston or Wichita bail out irresponsible California homeowners, banks and the state’s [Read More...]