COLUMBUS GROVE

Foreclosure filings dry up so MLS inventory is NOT coming

Oct 222012

Since the housing bust began in 2007, housing analysts focused on lender activity as the best indicator of future housing supply and the direction of future housing prices. The reasoning for this is simple: lenders control the housing market. Prior to the housing bust, the housing market was a collection of individual homeowners unrestrained by their mortgage obligations. Once prices began to fall, many would-be sellers submerged beneath their debts and required lender approval for a sale. The short sale was born. Many others defaulted on their loans, and lenders foreclosed on the delinquent borrowers until lenders became overwhelmed with REO inventory. Between the REOs that the banks own and the short sales that they must approve, the market changed [Read More...]

Irvine home prices won’t reach the peak for another decade

Oct 162012

Assume for a moment that house prices have bottomed. This still isn’t certain, but it’s looking more and more each day like the bottom is in. The final piece to the puzzle that convinced me house prices weren’t going to reverse course came when Ben Bernanke announced the federal reserve was going to purchase $40B per month in mortgage-backed securities for as long as it takes to make housing and employment to come back. Further, to reiterate his commitment to the policy he stated, “We’re not going to rush to begin to tighten policy. We’re going to give it some time to make sure the recovery is well established.” You can’t fight the Fed. Basically, the federal reserve is going [Read More...]

Mortgage equity withdrawal is expected to come back… unfortunately

Sep 282012

Our economy depends on Ponzi borrowing to the point that the government actually encourages this behavior despite the fact that millions lost their homes because of it. The ability to freely access and spend home equity creates moral hazard. It encourages over-borrowing and overpaying. It was one of the primary contributors to the housing bubble. The desire for HELOC booty motivated the foolishness. Many people run up $10,000 to $15,000 per year in credit card debt because they are fiscally irresponsible and fail to live within their means. During the bubble, loan owners would go to the housing ATM machine, pull out a year’s worth of irresponsible spending, and pay off their credit card debt. After two or three years [Read More...]

Columbus Grove is making Westpark a good value

May 142012

Irvine: Westpark Overview Median home price is $491,000. Based on a rental parity value of $568,000, this market is under valued. Monthly payment affordability has been worsening over the last 1 month(s). Momentum suggests unchanging affordability. Resale prices on a $/SF basis declined from $335/SF to $331/SF. Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. Median rental rates declined $66 last month from $2,450 to $2,383. Rents have been rising for 12 month(s). Price momentum suggests rising rents over the next three months. Market rating = 8 Proprietary Irvine Housing News home purchase analysis 1806 LADRILLO AISLE #103 Irvine, CA 92606 $429,900 …….. Asking Price $165,500 ………. Purchase Price 11/20/1995 [Read More...]

Columbus Grove buyer taking a $200K loss

Feb 072012

Today’s featured property is offered as a standard sale. If that’s true, the owners are going to lose about $200,000, assuming they get their asking price, which seems a bit too high. They paid $578,000 on 5/23/2007. Today they are asking $429,000. Because of the high Mello Roos and HOA fees, this property is still priced above rental parity, and with the undesirability of three-story houses, I see this asking price coming down before this unit sells. – —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- [Read More...]

75% of Columbus Grove listings are distressed

Dec 252011

If it’s for sale in Columbus Grove, it’s probably distressed. Currently there are only eight active listings in this community, and six of them are distressed. Today’s featured property is being offered for nearly 30% off its peak purchase price. With the high Mello Roos and HOAs, it’s not yet at rental parity. Columbus Grove will experience more pain before the bottom is in place there. – —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- [Read More...]

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