The Collected Works of Author and Blogger Larry Roberts

Archive for 2011

Most often blaming others is a way to dodge taking personal responsibility. realtors are suffering right now. Transaction volumes are off and prices are well below what they were a few years ago. Since realtors have disavowed any responsibility for the role their amoral sales practices played in inflated the bubble, they are now blaming banks for failing to inflate a new one. It's a low risk position for realtors to take. It isn't their money at risk. Lenders must put their money at risk to make loans which results in a real estate transaction and realtor commission. Since lenders don't want to lose any more money, they are being careful about who they loan it to. realtors don't understand…[READ MORE]

To be underwater with a cost of ownership exceeding a comparable rental is to be trapped in a debtor's prison. Loan owners in these circumstances have few good options. If they move and rent the house, they lose money each month until rents rise enough to allow them to break even. In a weak economy with stagnant wage growth, it may be a very long time before these owners get back to even on a payment basis. If they sell, it will be a short sale. They will endure a decline in their credit score, and they may have to arrange repayment with a lender as a condition of the sale. If they can't negotiate a short sale, and they…[READ MORE]

For the first time in the nearly five years I have been writing for this blog, prices across most of Irvine are trading at or below rental parity. There are significant market headwinds which will likely prevent house prices from moving higher, so relatively affordable prices may be with us for a while, and I think that is great news. Today, we are going to take a detailed look at the Irvine data. This is the same data I present in our monthly OC housing market presentations. We will be taking December off, but we will be back in January to provide a live presentation of the current market data. In October and November, months of supply typically increases. Many…[READ MORE]

The Chinese have long known they have a problem with real estate values. Over the last several years, the Chinese government has enacted a series of half-hearted policies aimed to slow the increase in real estate prices. Unfortunately, the Chinese housing bubble is a runaway freight train heading for an awful crash. Shanghai Homeowners Smash Showroom in Protest Over Falling Prices October 25, 2011, 4:17 PM HKT A weekend scuffle in Shanghai over a drop in apartment prices adds to increasing evidence that China’s efforts to tame a surging property market are having an impact – even as it offers a hint of what could happen if the measures go too far. A group of around 400 homeowners in Shanghai…[READ MORE]

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 Shady Canyon home. With three children, their 4.000 SF 5 bedroom house no longer met their needs. She wasn't bragging…[READ MORE]

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