Chapman: Excessive supply prevents appreciation in 2012

 IRVINE, NEWS
Dec 132011
 
Chapman: Excessive supply prevents appreciation in 2012

In a recent report Chapman University’s Anderson Center for Economic Research said, “More problematic is the inventory of unsold homes. Not only are there still too many unsold housing units in the market, there are a large number of homes in the foreclosure process that will keep the supply of resale housing units at an elevated level.” They are projecting the median sales prices will remain flat. In this same report last year, Chapman blew it and projected an increase in the median sales price. The supply problems that caused their forecast to fail in 2011 became the reasoning for [Read More...]

OC Median price on houses down 9%

 IRVINE, NEWS
Dec 122011
 
OC Median price on houses down 9%

The median home price for single-family detached homes, excluding condos and new construction, was down a whopping 9% over the last 12 months. As a sign that prices are still far too high, sales volumes are still more than 20% off their historic norms. The housing market will not bottom until prices get low enough to entice buyers to clean up the mess the banks made. The distressed properties must be taken from those who cannot afford them and resold to buyers who can. Foreclosure and short sale are the most likely paths forward as loan modifications have generally failed [Read More...]

No equity, no move-up buyer; no move-up buyer, you get a slow market

 IRVINE, NEWS
Oct 312011
 
No equity, no move-up buyer; no move-up buyer, you get a slow market

Everyone want to move up to better housing accommodations. Years ago I toured the Tijuana subdivisions of URBI. One of the homes was a 288 SF single family detached home. When I asked one of our guides who bought such a place, he beamed with pride and said they were generally people moving out of shanties. They were thankful to have working plumbing, solid walls, and climate control. That tiny home was a huge improvement over what they moved out of. My wife recently had a conversation with a woman who was lamenting her plight. Her family was outgrowing their [Read More...]