The Collected Works of Author and Blogger Larry Roberts

Archive for January, 2012

Hope springs eternal. People are prone to believe what they want to believe, and with a little bullshit from the the National Association of realtors buyer sentiment toward housing has barely declined at all since the housing bubble catastrophically burst six years ago. Take a careful look at the chart below, and marvel over the foolish optimism of potential homebuyers. Most homebuyers over the last 10 years are currently either underwater or the value of their home is worth less than they paid for it. Homebuyer sentiment during the housing bubble was high, but that isn't surprising given the strength of the kool aid. What shocks me is how well homebuying sentiment has held up during the crash. Sellers on…[READ MORE]

When I first started writing about the housing market in 2007, I gained attention by making some outlandish predictions about the housing market. I was one of the few who publicly made the case for a crash in housing prices. I laid out the case, provided my reasoning, and stood by my predictions. I reviewed my results in early 2011 in Predictions versus reality: Irvine Renter’s track record. Today, I want to take a another stroll down memory lane and make new predictions for 2012. 2007 In 2007, I said house prices would crash in Predictions for the Irvine Housing Market (2007). Below is a chart I created to demonstrate what I believe will occur in the Irvine Housing market…[READ MORE]

A new study from Office of the Comptroller of the Currency showed mortgage delinquencies at major banks at 12% when it is normally less than 1%. Many of these mortgages are shadow inventory where banks have been allowing delinquent mortgage squatters to stay rent-free for years. Also, foreclosures are increasing rapidly as the banks are finally accepting rising prices will not bail them out, so they are going to have to clear out the delinquent borrowers on their own. Amend, extend, pretend is dead. Mortgage Default Is A Financial Bonanza For Many Homeowners As Foreclosure Crisis Continues December 22, 2011 The Office of the Comptroller of the Currency (OCC) painted a gloomy picture for the housing markets with its release…[READ MORE]

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