The Collected Works of Author and Blogger Larry Roberts

Archive for February, 2016

Reducing the number of homes for sale was the essential ingredient to bail out bankers and loanowners whose foolish behavior caused the housing bubble. From early in the housing bust, I knew that how the banking cartel disposed of their REO would determine the fate of the housing market. Since lenders modify loans, hold non-performing loans on their books, and allow delinquent borrowers to squat, they control the flow of properties through the foreclosure process. Also, they control the approval of short sales; therefore, they control the flow of properties through the short sale process. Since distressed sales of foreclosure properties and short sales flooded the market during the bust, lenders controlled the bulk of the supply on the market. At the time,…[READ MORE]

The housing bubble in San Francisco is the fourth unsustainable price rally in the last 45 years. The only question is when the correction will happen and how deep it will go. In the ashes of the first technology bubble, the term web 2.0 was coined to describe the new and improved mania gripping Silicon Valley today. Adding the term "2.0" is now synonymous with any resurgent industry in the aftermath of a near total collapse. Some would like to call the housing bubble inflating in San Francisco today housing bubble 2.0, but that wouldn't be accurate: We're on housing bubble 4.0. Housing bubbles 1.0, 2.0, and 3.0 The first housing bubble in California inflated shortly after the passage of…[READ MORE]

Investors move out of stocks and into safe investments like government-backed mortgages, lowering rates and increasing housing demand. For the last several years, the real estate market observers awaited the imminent rise in mortgage rates sure to trigger a price crash. While the spike from 3.5% to 4.5% in a six-week period in mid 2013 certainly removed the strong backwind from real estate, it didn't signal the beginning of the end. On the contrary, since then mortgage rates have pushed back down near record lows, and despite high prices, housing is very payment affordable again. Since mortgage rates are near record lows, the consensus opinion is that mortgage rates will eventually rise again. It's very unlikely that 3.5% mortgage rates…[READ MORE]

IRVINE, Calif., February 1, 2016 – OC Housing News Los Angeles County Housing Market News February 2016 Historically, properties in this market sell at a 9.5% discount. Today's discount is 14.0%. This market is 4.4% undervalued. Median home price is $507,100 with a rental parity value of $594,700. This market's discount is $87,600. Monthly payment affordability has been worsening over the last 1 month(s). Momentum suggests unchanging affordability. Resale prices on a $/SF basis increased from $408/SF to $410/SF. Resale prices have been rising for 11 month(s). Over the last 12 months, resale prices rose 5.7% indicating a longer term upward price trend. Median rental rates declined $2 last month from $2,633 to $2,630. The current capitalization rate (rent/price) is…[READ MORE]

Do you want free money?  If you buy a home from a homebuilder without an agent, you pay full price. If you buy a home with us as your agent, you get 1.5% back. Same house, but 1.5% of the purchase price refunded back to you. It’s free money! Take it!  As a bonus, you get full agent representation. Did you know many items in a builder’s sale contract are negotiable? Do you know which options are better installed by the builder and which ones are better done by others later? In addition to helping negotiate a better price, we also prepare detailed reports showing the cost of ownership of your new home. Why put yourself at the mercy of…[READ MORE]

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