Demand for houses by owner occupants has been anemic for nearly three years after four years of steep and unprecedented declines. Despite the refrain of increased demand from the bottom-calling glee club, the data clearly shows any increase in sales volume and demand this year is entirely due to cash investors, largely hedge funds buying low-end properties in beaten down markets. The decline in purchase applications is caused by two factors: potential buyers do not have the down payment, and potential borrowers cannot qualify for the loan. During the housing bubble, debt was cheap and plentiful, so many Americans stopped saving in favor of taking on copious amounts of debt. The Great Recession depleted the savings of the few Americans [Read More...]

Shadow inventory is composed of delinquent mortgage holders who still occupy the houses they are not paying for. Many in shadow inventory have been living payment free for years, and many will continue living for free for several more. So why did banks do this? Ordinarily, banks would foreclose quickly to get their capital back to loan it profitably to someone else. What was their benefit in allowing so many to squat for so long? In mid 2008, house prices were crashing hard, particularly in subprime dominated markets which were the first to implode when their toxic mortgages required higher payments. Lenders quickly realized prices were crashing because they were flooding the MLS with inventory, and the available buyer pool [Read More...]

Irvine: University Park Overview Median home price is $483,000. Based on a rental parity value of $575,000, this market is under valued. Monthly payment affordability has been worsening over the last 4 month(s). Momentum suggests worsening affordability. Resale prices on a $/SF basis increased from $297/SF to $299/SF. Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. Median rental rates increased $16 last month from $2,333 to $2,350. Rents have been rising for 12 month(s). Price momentum suggests rising rents over the next three months. Market rating = 6 Proprietary Irvine Housing News home purchase analysis 14 BUTTERNUT Ln Irvine, CA 92612 $970,000 …….. Asking Price $1,085,000 ………. Purchase Price 8/23/2006 [Read More...]

Irvine: University Park Overview Median home price is $485,000. Based on a rental parity value of $532,000, this market is under valued. Monthly payment affordability has been worsening over the last 3 month(s). Momentum suggests worsening affordability. Resale prices on a $/SF basis declined from $299/SF to $293/SF. Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. Median rental rates increased $50 last month from $2,183 to $2,233. Rents have been rising for 11 month(s). Price momentum suggests rising rents over the next three months. Market rating = 6 Proprietary Irvine Housing News home purchase analysis 4042 GERMAINDER Way Irvine, CA 92612 $499,900 …….. Asking Price $345,100 ………. Purchase Price 12/16/2011 [Read More...]

Irvine: University Park Overview Median home price is $485,000. Based on a rental parity value of $532,000, this market is under valued. Monthly payment affordability has been worsening over the last 3 month(s). Momentum suggests worsening affordability. Resale prices on a $/SF basis declined from $299/SF to $293/SF. Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. Median rental rates increased $50 last month from $2,183 to $2,233. Rents have been rising for 11 month(s). Price momentum suggests rising rents over the next three months. Market rating = 6 Proprietary Irvine Housing News home purchase analysis 28 WINTERSWEET Way Irvine, CA 92612 $614,900 …….. Asking Price $435,000 ………. Purchase Price 11/12/2002 [Read More...]