They’re not even trying to blame the weather this time. “Housing affordability is really taking a bite out of the market,” is how the chief economist for the California Association of Realtors explained the March home sales fiasco. “We haven’t seen this issue since 2007.”
Entries in Housing (53)
Hot Air Hisses Out Of Housing Bubble 2.0: Even Two Middle-Class Incomes Aren’t Enough Anymore To Buy A Median Home
Giant PE firms and REITs have become the largest landlords in the country over the last two years because “there was a moment in time where it made sense,” but now home prices are too high, the business model has collapsed, and buyers evaporate.
By Tim Melvin: With stock markets flying near all-time highs, a recent article recommended tapping into home equity to purchase stocks. It listed three major points why this is a great idea. But it could be a horrible idea.
It starts here: evictions in San Francisco hit the highest level since 2001, when the dotcom bubble was disintegrating. Everything these days gets benchmarked against the last bubbles: the dotcom bubble that blew up in 2000, the housing bubble that blew up in 2007.
What Caused The Glorious Jump In Household Wealth (In One Insanely Good Chart) And Who Will Blow It Up Again?
The stock market has soared for five years, risks have ballooned, home prices have jumped. Gains built on the quicksand of endless liquidity and a lackluster economy. “Irrational exuberance” is back in the Fed's vocabulary. As the Fed’s Fisher said, it may end “in tears.”
By Aaron Layman: All US home builders are dealing with the same problem…affordability. They’re now seeing the consequences of the Fed’s Catch-22: depressed sales.
National averages paper over gritty details on the ground and are a crummy indicator as to what is happening in specific metro areas. But even with this caveat, a national average suddenly sounded an alarm for the housing market: the smart money is bailing out.
Teachers are a symbol of the middle class. In California, they earn on average $69,300 annually, fifth highest in the country. Not exactly a pittance. But it is a ludicrous pittance if they’re trying to buy a home.
First-time buyers, a powerful economic energy, create real demand and make the housing market grow. We’ve been praying for their arrival like we’ve been praying for rain in parched California. But the more we pray, the fewer there are.
OK, I get it. Life-threatening cold temperatures, polar vortices, and snow mayhem can put a damper on home construction, mortgage applications, first-time buyers, and home-builder confidence. But they also plunged on the West Coast where the weather was gorgeous.
“Foreclosure Rebound Pattern”: Foreclosures SUDDENLY Jump 57% in California (And Soar In Much Of The Country)
The cynic in me says the dizzying jump in foreclosure starts in January in much of the country, after years of sharp and consistent declines, must be some kind of data problem. Maybe RealtyTrac’s computers got hacked, or something. But that’s wishful thinking.
It’s back, a new and improved contraption, a synthetic structured security that on its polished surface looks like that triple-A rated mortgage-backed toxic waste that helped blow up the banks and your 401(k) in 2008. But this time, it’s different. It’s even worse.
The salary you must earn to be able to buy the median home in San Francisco is $125,071. That home costs $705,000 – up 24% from a year ago. San Francisco tops the list of the most unaffordable cities. Households earning the median income of $51,000, well, forget it.
Prices for housing have jumped and rents have jumped too, yet the 38.7 million renters, 34% of all households, watched with dismay as their real wages declined. They’ve got a problem with the “wealth effect” that Bernanke held up as pretext for printing money.
Number one is Palo Alto, epicenter of Silicon Valley craziness, where home prices are now 40% higher than they were at their prior bubble peak. What are we calling this phenomenon? Bubble? Nope. “Housing recovery.” But the middle class has hit a wall.
Now part three, after soaring home prices and mortgage rates. It was drowned out by the hullaballoo over the Fed’s taper announcement. It came from Fannie Mae and Freddie Mac. It will drive up mortgage payments even more.
By Lee Adler, The Wall Street Examiner: Looks can be deceiving. The way the media reports housing starts today, you’d think housing is booming. Total starts were reported at 1.09 million units. Consensus expectation was 950,000. Headline writers went nuts on that.
By Doug French, Casey Research: In March, 2009, under pressure from Congress, the Financial Accounting Standards Board, a private-sector organization, motivated banks to become the worst slumlords and neighbors imaginable.
By Lee Adler, The Wall Street Examiner: Is the long running US housing bubble saga coming to an end? From the way the National Association of Realtors reported that pending home sales had a year to year decline in September, you’d think so. But they compared two seasonally adjusted numbers. In unadjusted terms, the index rose (a still lousy) 1.1%.
By Joao Peixe of Oilprice.com: Property developers in the US, aware that land value jumps as soon as mineral deposits are found in the area, have begun to retain oil and natural gas extraction rights beneath the houses they sell – to sell those rights to oil and gas companies in the future. In many cases they don’t even advise property buyers.