The Collected Works of Author and Blogger Larry Roberts

Archive for July, 2016

2015 was touted as the year of the boomerang buyer. Lenders and realtors prepared, and the financial media wrote the invitations, but the boomerang buyers failed to arrive. Many people criticize the financial media for running negative stories that "talk down the market," but realistically, the financial media doesn't have the power to move markets, and when they report an uncomfortable truth without the sugary spin, some people complain. When it comes to financial news, people only want to read good news, news that reinforces their belief in the correctness of their investments and reaffirms their faith in lifelong financial prosperity. Thus we have an entire branch of media that only presents good news. Any news that isn't positive must be…[READ MORE]

Many people sell when prices rise high enough for them to retire, move up, or extinguish their debts. Many people imagine the property ladder as a progression from a condo near work, to a house in the suburbs, to a mansion by the beach. Many people buy entry-level housing, and when prices rise high enough for them to pocket a 20% down for a larger property, they participate in the move-up market. If their income grew while they lived in their entry-level home, the step up can be quite luxurious. If their income didn’t go up much, they are probably better off refinancing into a lower-cost mortgage and staying where they are. The housing bubble severely disrupted the housing market.…[READ MORE]

Historically, properties in this market sell at a 18.5% discount. Today's discount is 28.5%. This market is 9.9% undervalued. Median home price is $321,500 with a rental parity value of $451,100. This market's discount is $129,600. Monthly payment affordability has been improving over the last 5 month(s). Momentum suggests improving affordability. Resale prices on a $/SF basis increased from $181/SF to $181/SF. Resale prices have been rising for 8 month(s). Over the last 12 months, resale prices rose 6.3% indicating a longer term upward price trend. Median rental rates increased $24 last month from $1,903 to $1,928. The current capitalization rate (rent/price) is 5.8%. Rents have been rising for 12 month(s). Price momentum signals rising rents over the next three…[READ MORE]

I was going to write a real estate post to get back into the swing of things, but I decided instead to write about my vacation experience. It was more inspiring for me. I hope you enjoy it. My grandfather just celebrated his 99th birthday. Based on what I observed, he seems like he still has many more to come. He has clear memories of his life, he recognizes people and interacts, he still has tremendous hand strength, and he comments on how you just have to "keep going." At 99 I don't know how many more years he has left, so I try to go back and see him at least once a year. My wife and son are…[READ MORE]

Whether or not "responsible" homeowners lost their homes depends on how you define "responsible." A common theme in the financial media is that people lost their homes during the housing bust due to unemployment, probably because it's easier than acknowledging the bad loans and borrower profligacy. During the Great Recession (2008-2009), American businesses terminated more jobs than they created -- by a wide margin. More than 7 million people lost their jobs during a two-year stretch. I recently noted that US lenders completed 6,324,545 foreclosures over the last ten years. Does that mean the foreclosures were caused by the unemployment? To some degree, this is certainly the case. I bought a foreclosure from an unemployed construction worker in Las Vegas.…[READ MORE]

Page 2 of 512345