Category — Mortgages-Financing

DR. HOUSING BUBBLE takes up this important question here.

The answer is home prices will fall significantly in California.  Home prices at 10x median annual income were not sustainable.   Given the fact that high unemployment will also become a significant factor, home prices will fall to about 2.5x annual income.  This factors in record low mortgage interest rates.

But what happens in cities in California where the population is declining?

APPRAISAL CUTS jumped significantly in September from August.

This isn’t a surprise in a falling commercial market.  This article in the CA Real Estate Journal reviews the CRE market statistics.

THE S&P/CASE-SHILLER home price index for July moved up including San Francisco.

3 Oceans has the story, and a roundup of mortgage market news, including interest rates going up next month.

The upward move in home prices in July is very temporary.  Lower inventory spawned the price increase and seasonal buying.  But lenders are holding thousands of REOs off the market, the Shadow Inventory.

Housing Needs Stabilization

BLOODHOUND BLOG has a thought for the day: government as a necessary evil.

For the first time I’m seeing political posts on real estate blogs.

This is a good thing.  I haven’t seen real estate blog post in favor of the current Administration.

TOTAL COMMERCIAL MORTGAGE HOLDINGS OUTSTANDING declined in the last quarter.   This is good.  Borrowers paid off more than new loans originated.

Cash is King.  Savings rates are soaring.