The Collected Works of Author and Blogger Larry Roberts

Archive for September, 2014

The updated OCHN rating system helps buyers evaluate each property on the MLS for its ownership value relative to renting. Rental parity is a simple idea, as many of life's most powerful concepts are. Rental Parity is the point where rent is equal to the monthly cost of ownership. When rent and the cost of ownership are imbalanced, it often signals individual properties or entire markets are overvalued or undervalued. I used a basic understanding of rental parity to determine the California housing market was a bubble and avoid buying into it. I used the same concept to identify undervalued properties in Las Vegas and buy when prices were depressed. I put my money where my mouth is, and it…[READ MORE]

A slowly improving economy and tight inventory for both rentals and resale homes drives up rents and prices while harming home sales rates. The housing market broke out of it's yearlong flatline condition over the last few months.The spring rally pushed prices higher, driven mostly by rising rents, but resale volume was very low, suggesting the gains do not represent fundamentally strong demand from an improving economy. Housing bears suggest the recent weakness may be a sign of a medium-term market top. Coastal California housing is the least affordable in the US because the chronic shortages of inventory forces buyers to compete and bid prices higher. These higher prices are hurting both resales and new home sales. Further the market…[READ MORE]

The market is crazy! Contact us for a free market evaluation of your home. I've seen some neighborhoods appreciate over $200,000 in the past six months while others are down as much as 5%, making it even more important that you have a professional, experienced, real estate agent guiding you. Please contact me at [email protected] or 949.769.1599 for a free market evaluation of your home. I will pay 1% towards your closing costs, if you purchase one of my active listings--- ask me for details. We have some great opportunities for buyers, please take a look at the virtual tours for some of our current listings. Click on the virtual tour links below or email me any questions that you…[READ MORE]

The political right is revising housing bubble history and fostering a blatant lie to support its own political agenda. I try not to be political on this blog. My posts have been picked up from both Tea Party blogs and Progressive blogs, so partisans embrace my pillory of both sides foibles. My burning desire is to know and expound the truth, and it angers and offends me when either side spins facts and promotes an inaccurate interpretation of financial history. My latest ire for revisionist history is directed at the political right as they incorrectly blame the policies of the political left for inflating the housing bubble. Interestingly, I support what the political right wants to do, prevent the political left from…[READ MORE]

Mortgage interest rates are lower than last year, but sales volumes are also lower than last year as low rates fail to entice additional homebuyer demand. I would like to own a Lexus LS 460. It's a beautiful and luxurious automobile; however, I am reluctant to buy one because the price is just too high. They could lower the interest rate to zero, and I would be unlikely to buy a car that costs that much. No matter how much people may want something, if the price is too high, they will be reluctant to buy it. Most Americans want to own a house; study after study shows that. However, Americans aren't willing to overpay for a house and risk…[READ MORE]

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