President Obama has lost his mind. I guess I shouldn’t be too surprised that Obama would embrace HELOC abuse as a good idea. After all, Obama HELOCed his home in Illinios before he became president. Personally, I find this outrageous. Our commander-in-chief, the leader of our nation, has embraced HELOC abuse as a noble behavior that should be encouraged by a taxpayer bailout. The dipshits who lose their home from excessive borrowing should be given a pass, and everyone who [Read More...]
I have long contended that rental parity is the fundamental value of houses. Whenever values differ significantly from rental parity, up or down, reversion to the mean is inevitable. Buyers should be aware of rental parity because paying more than rental parity significantly limits a buyers options. First, such a buyer cannot rent the property to cover the bills, so if they had to move, they either must sell the property or endure an indefinite period of negative cashflow. Since [Read More...]
Rancho Santa Margarita Overview Median home price is $334,000. Based on a rental parity value of $529,000, this market is under valued. Monthly payment affordability has been improving over the last 2 month(s). Momentum suggests improving affordability. Resale prices on a $/SF basis increased to $223/SF to $224/SF. Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. Median rental rates increased $0 last month from $2,231 to $2,231. Rents have been [Read More...]
The OC Housing News profiles properties for sale each day and presents current market data on each city in Orange County. If you really want to know what’s happening in the OC Housing market, you need to read the OC Housing news and subscribe to the our monthly newsletter. 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 [Read More...]
Last fall I documented Desperate for cash: BofA cuts 30,000 jobs, ramps up foreclosures and Bank of America foreclosure notices increase 116%, spring 2012 rally doomed. It’s spring now, and although current bank inventory on the MLS is low, the pipeline of foreclosures is still quite large, and now properties B of A began foreclosing on last fall are already coming to market (see today’s featured property). It has begun. Home repossessions set to jump in 2012 By Jon Prior [Read More...]
Fed’s Bullard: Not Feasible,Desirable To Reflate Housing Bubble Friday, February 24, 2012 – 11:36 — By Vicki Schmelzer NEW YORK (MNI) – The U.S. housing market continues to faces significant “headwinds, St. Louis Federal Reserve Bank President James Bullard said Friday. Bullard offered his observations on a piece “Housing, Monetary Policy and the Recovery,” co-authored by Michael Feroli, chief U.S. economist at JPMorgan Chase, Ethan Harris, co-head of global economic research at Bank of America Merrill Lynch, Amir Sufi, professor [Read More...]
The newly announced foreclosure settlement deal should dramatically increase foreclosure rates because banks no longer have to worry about lawsuits over their foreclosure practices. Further, with impending sales of bulk portfolios to private equity groups, banks will be able to dispose of the REO once they acquire it at auction. With the two biggest impediments to foreclosure removed, banks have no reason to permit delinquent mortgage squatters to continue receiving free housing. Let the foreclosures begin. Foreclosure Deal to Spur [Read More...]
Many loan owners quit paying their mortgages years ago. They enjoy a free ride while the banks wrestle with what to do with their bad loans. If the banks process their foreclosures, they must recognize the losses, and the resulting sales will find their way to the MLS. Typically, about one-third of all foreclosures go to third parties at auction. Even if lenders hold all their REO for better days, the third-party auction buyers will sell most of theirs. The [Read More...]
It isn’t often I find an economist I agree with. Most economists missed the housing bubble, and even six years later, they fail to understand the ramifications of it. They act surprised when their forecasts prove faulty. Basically, most economists don’t know what they are doing. It’s refreshing when I find one who grasps what’s really going on, and today’s interview is with one such economist. Economist eyes 5% home-price drop January 7th, 2012, 12:28 am · · posted by [Read More...]
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