A common meme in the realtor community is that distressed sales, REO and short sales, are somehow not part of the market. It’s a common misconception shared by agents, sellers, and some misguided housing market analysts. This idea emanates from the desire to see prices rise. Every seller wants to get a premium price, and agents are prone to pander to seller delusions to get listings. When the market moves the other way, agents have to explain to sellers why [Read More...]
Californian’s believe it’s supposed to cost more to own an home than to rent one. It’s one of the biggest misconceptions in real estate. It’s so deeply engrained that even the so-called experts don’t question it. Renting is supposed to be more expensive than owning. Renters have mobility and no responsibility for maintenance, insurance, taxes and other expenses. The main reason anyone would pay more to own than to rent is because they foolishly believe they will be financially compensated [Read More...]
Many people bought during the housing bubble because they wanted a home for their families. They stayed within reasonable debt-to-income guidelines and used fixed rate mortgages. Unfortunately, the prudent were small in number, and most of them have obtained loan modifications to make their super-sized debts manageable. Many other people bought during the housing bubble because they saw their house as an investment, or worse a cash cow they could milk periodically to supplement their spending. These people saw rising [Read More...]
Redfin is the most popular real estate search site in Southern California. They track the most popular listings based on the number of views each receives. Below are some of the most viewed property listings in Orange County. Check them out. See what everyone else finds so interesting. 21562 SADDLE RIDGE Way Yorba Linda, CA 92887 — $698,000 Competing Listings $975,000 21515 DUNROBIN Way 1.02 miles 5 bd / 4.5 ba 4,271 Sq. Ft. $785,000 22355 ROLLING HILLS Ln 1.08 [Read More...]
Today’s post comes out of the conspiracy theory vaults, but it supports a contention I have been making for the last few years: shadow inventory is much larger than most housing analysts believe. CoreLogic reports shadow inventory at 1.6 million units. With nearly 10 million loan owners underwater and prices falling, hope is fading for the middle class hanging on to their dreams of equity. Many of these people will strategically default, and if the featured article today is accurate, [Read More...]
Astute Observations