The Collected Works of Author and Blogger Larry Roberts

Archive for March, 2012

I developed the OC Housing News Market Newsletter to provide information on the local housing market useful to potential homebuyers. I believe people make good decisions when given good information. We all know the information provided by realtors on the housing market is manipulated to motivate buyers to act. realtors numbers are rarely accurate, and like the boy who cries wolf, nobody believes the realtor who cries buy. I also follow a philosophy of constant improvement. When I first published the OC Housing News Market Newsletter, I assembled a great deal of data and struggled to find a coherent way to present it. Creating fancy charts and graphs is easy. Presenting and interpreting data in an easy to understand manner…[READ MORE]

Despite a vigorous public relations campaign by both government officials and bank representatives, the sheeple are angry over the terms of the bank settlement. Loan owners are upset because they are not getting the break the believe they deserve, and prudent borrowers are upset because they know others are getting handouts. The only people who are happy with the settlement are bankers, and perhaps government officials who look like they did something. Rage grows over mortgage deal By Les Christie @CNNMoney March 13, 2012: 11:00 AM ET NEW YORK (CNNMoney) -- As more details emerge about the massive $26 billion foreclosure settlement between the five biggest mortgage lenders and the states' attorneys general, a growing number of borrowers are realizing…[READ MORE]

House prices still seem very high in Orange County. The most recent median home price reading is $375,000, and houses sell for around $260/SF. Many potential buyers still lament the high cost of housing in Orange County, and compared to the late 1990s, house prices are much higher than inflation alone would dictate. So are house prices still too high? Compared to the 1990s, house prices are too high, but compared to the peak of the housing bubble in 2006, prices are much, much more affordable, particularly on a monthly payment basis. Consider this, in July of 2006, mortgage interest rates were 6.76%. Today they are 3.88%. Further prices are about 30% to 40% lower. Since about two-thirds of all…[READ MORE]

The lending Ponzi scheme that inflated the housing bubble popped in August of 2007 with a credit crunch. Lenders realized their collective folly and abruptly stopped lending to prevent further losses. Without the lender air needed to sustain the bubble, house prices abruptly collapsed, and millions of borrowers who never could afford their payments gave up trying. The surge in mortgage delinquencies far outpaced the ability of lenders to process foreclosures and absorb them in the resale market. Rather than accumulate 10 million REO or push house prices back to 1990s levels through an MLS fire sale, lenders decided to allow millions of delinquent borrowers to occupy properties they were not paying for. Shadow inventory was born. Overhead supply of…[READ MORE]

As most regular readers know, I believe the National Association of realtors frequently tells self-serving lies. They try to portray their actions as serving the market or the interests of loan owners, but their first priority is themselves and generating commissions. When the interests of the market are in conflict with the self-serving interests of realtors to generate commissions, the statements and policies of realtors will always favor their own interests. Today's article is a clear example of their narrow, self-serving focus. Government Foreclosure to Rental Pilot Programs Not Needed in Most Markets, Say Realtors(R) March 1, 2012, 3:40 p.m. EST WASHINGTON, DC, Mar 01, 2012 (MARKETWIRE via COMTEX) -- Housing markets are complex and varied, and a government pilot…[READ MORE]

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