Archive for the 'foreclosures' Category

Don’t bet on a 2010 economic recovery. 10 stunning charts showing no housing recovery moving forward and weak employment growth. Employment, construction spending, commercial real estate, home prices, and consumer sentiment.


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.


800,000 mortgages in California are 30+ days late or in foreclosure. Only 132,000 show up in the MLS. Why there will be no housing bottom for California until at least 2012.


Three reasons why you should be happy about renting in California: Glut of rental housing, mobility, and hedge against future price drops.


21,000 Los Angeles MLS homes versus 58,000 distressed properties. Southern California multi-million dollar CRE default. Retail spending up because rich are bored with the financial crisis.


Real Homes of Genius: Calabasas million dollar foreclosure and multiple foreclosures on La Mirada block with shadow inventory. Home sellers competing with invisible sellers. $500,000 and $2 million home purchases with 100 percent financing deals.


California tax credit half used in one month, distress inventory down but non-payment up, effective homeownership rate of Los Angeles County 38.5 percent compared to 50.5 percent headline rate.


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© 2006 Dr. Housing Bubble