Archive for July, 2010

Where did the option ARMs go? Cheaper to pay modified loan than paying market rents. Subsidizing the housing market through shadow finance. Interest only payment 10 percent cheaper than market rents.


The rich do it too – Los Angeles County and million dollar distressed properties. 1,947 homes in L.A. County valued at $1 million or more are three payments behind or in foreclosure. Beverly Hills prices down 31 percent from one year ago. 14 out 100 homes on the MLS are priced at $1 million and up.


Frankenstein real estate market – $3.5 trillion in commercial real estate debt and $10.3 trillion in residential real estate debt. Will we reach a 50 percent underwater market where 25 million Americans sit in homes worth less than their mortgage?


Southern California housing largely in a housing bubble – California CPI up 31 percent for the decade home prices in SoCal up 45 percent. Los Angeles County up 72 percent and Orange County up 63 percent.


Double dip economy – Housing entering troubling waters. Nationwide economic and housing data points to challenges ahead. 5 charts showing a difficult second half of 2010.


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