OAK CREEK

When it comes to future home prices, opinions vary widely

Oct 102012

When it comes to predicting future home prices, nobody really has a clue. It’s very difficult to predict when the market is so heavily manipulated and the erratic decisions of a few key players can completely change the outcome. For example, the federal reserve controls the interest rate stimulus, and although they are currently saying they plan to leave interest rates low for years to come, they could change their minds. The supply of REO on the market is completely at the discretion of a cadre of banks colluding to restrict supply to drive prices higher in order to lose less money on their bad loans from the bubble. This is a cartel, and if it begins to break down, [Read More...]

To prevent future housing bubbles, debt-to-income ratios must be limited

Sep 172012

In The Great Housing Bubble, I wrote about how we could prevent the next housing bubble: Loans for the purchase or refinance of residential real estate secured by a mortgage and recorded in the public record are limited by the following parameters based on the borrower’s documented income and general indebtedness and the appraised value of the property at the time of sale or refinance: All payments must be calculated based on a 30-year fixed-rate conventionally-amortizing mortgage regardless of the loan program used. Negative amortization is not permitted. The total debt-to-income ratio for the mortgage loan payment, taxes and insurance cannot exceed 28% of a borrower’s gross income. The total debt-to-income of all debt obligations cannot exceed 36% of a [Read More...]

Will housing fall over the fiscal cliff with rising taxes?

Sep 112012

The Republicans under George Bush passed a series of tax cuts that are due to expire at the end of 2012. Republicans are making this a campaign issue by scaring voters with the specter of a “fiscal cliff.” Economists have stepped forward with varying but dire predictions of the end of the US economy. Republicans hope they can scare enough people to win the upcoming election. They just might. Lost in the campaign rhetoric is a careful examination of what the expiration of the various tax cuts really means. Will expiring tax cuts cause housing to fall off a fiscal cliff? It might, but not in the way most pundits imagine. The real danger is not from a damaged economy. [Read More...]

Romney’s housing plan fails while Obama gets boost from bottom callers

Sep 092012

I recently wrote that the housing bubble creates a no-win political situation for either presidential candidate. Despite the political minefield housing policy creates, Mitt Romney has published a very brief and vague plan he hopes will excite voters. It won’t. Housing: Fulfillment of the American Dream Overview For millions of Americans, homeownership is about more than just a place to live. For many, owning a home is the fulfillment of the American Dream. Yet today, the dream of home ownership is out of reach for many Americans as a result of President Obama’s failed policies and stalled economy. Owning a home is oftentimes the most significant investment a family makes during their lifetime. The housing crisis of the last few [Read More...]

The housing market is subject to government policy manipulation

Aug 302012

The housing market is anything but stable. Decisions by banks, government regulators, the federal reserve, congress, and Treasury department officials have tremendous impact on house prices. For example, decisions at the federal reserve regarding interest rates have imbued the market with such high payment affordability that buyers can finance the still-inflated prices of the previous bubble. Banks decided early this year to slow the rate they took back properties at foreclose auctions thus reducing MLS inventory of REO significantly. Government regulators changed accounting rules in 2009 to allow banks to keep delinquent mortgage squatters in place with delayed millions of foreclosures for many years. The GSEs, now run by the Department of Treasury, are liquidating their portfolios and changing the [Read More...]

Oak Creek prices still drifting lower

Jul 242012

Irvine: Oak Creek Overview Median home price is $433,000. Based on a rental parity value of $551,000, this market is under valued. Monthly payment affordability has been improving over the last 2 month(s). Momentum suggests improving affordability. Resale prices on a $/SF basis increased from $310/SF to $312/SF. Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. Median rental rates increased $25 last month from $2,224 to $2,249. Rents have been rising for 12 month(s). Price momentum suggests rising rents over the next three months. Market rating = 5 Proprietary Irvine Housing News home purchase analysis 7 KELSEY Irvine, CA 92618 $749,000 …….. Asking Price $339,500 ………. Purchase Price 12/10/1999 ………. [Read More...]

Oak Creek prices still falling sharply

Jun 252012

Irvine: Oak Creek Overview Median home price is $466,000. Based on a rental parity value of $536,000, this market is under valued. Monthly payment affordability has been improving over the last 1 month(s). Momentum suggests unchanging affordability. Resale prices on a $/SF basis declined from $314/SF to $310/SF. Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. Median rental rates declined $9 last month from $2,233 to $2,224. Rents have been rising for 12 month(s). Price momentum suggests rising rents over the next three months. Market rating = 5 Proprietary Irvine Housing News home purchase analysis 19 ASHFORD Irvine, CA 92618 $998,000 …….. Asking Price $466,000 ………. Purchase Price 6/11/1999 ………. [Read More...]

Oak Creek prices flatten, no rally

Jun 122012

Irvine: Oak Creek Overview Median home price is $466,000. Based on a rental parity value of $536,000, this market is under valued. Monthly payment affordability has been improving over the last 1 month(s). Momentum suggests unchanging affordability. Resale prices on a $/SF basis declined from $314/SF to $310/SF. Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. Median rental rates declined $9 last month from $2,233 to $2,224. Rents have been rising for 12 month(s). Price momentum suggests rising rents over the next three months. Market rating = 5 Proprietary Irvine Housing News home purchase analysis 2 PEARLEAF Irvine, CA 92618 $530,000 …….. Asking Price $690,000 ………. Purchase Price 11/8/2007 ………. [Read More...]

Oak Creek rents are overheating

May 252012

Irvine: Oak Creek Overview Median home price is $477,000. Based on a rental parity value of $540,000, this market is fairly valued. Monthly payment affordability has been worsening over the last 2 month(s). Momentum suggests worsening affordability. Resale prices on a $/SF basis declined from $312/SF to $312/SF. Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. Median rental rates increased $150 last month from $2,116 to $2,266. Rents have been rising for 12 month(s). Price momentum suggests rising rents over the next three months. Market rating = 4 Proprietary Irvine Housing News home purchase analysis 3310 ASPEN GROVE Rd Irvine, CA 92618 $347,827 …….. Asking Price $525,000 ………. Purchase Price [Read More...]

Oak Creek down 7.6% and worsening

Apr 122012

Irvine: Oak Creek Overview Median home price is $471,000. Based on a rental parity value of $478,000, this market is under valued. Monthly payment affordability has been improving over the last 5 month(s). Momentum suggests improving affordability. Resale prices on a $/SF basis declined from $316/SF to $311/SF. Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. Median rental rates declined $183 last month from $2,200 to $2,016. Rents have been rising for 12 month(s). Price momentum suggests rising rents over the next three months. Market rating = 7 Proprietary Irvine Housing News home purchase analysis 63 WELLINGTON Irvine, CA 92618 $749,900 …….. Asking Price $399,500 ………. Purchase Price 4/26/2001 ………. [Read More...]

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