Housing Blogs

Sometimes when you find the right house, you just got to get it…414 Camino Hermoso, San Marcos, CA 92078–4 beds, 3.0 baths, 2,358 sq ft …
Original Source: bubbletracking.blogspot.com

With each passing month, the inflation numbers are getting worse. As the numbers deteriorate, the options available to central banks are becoming narrower; either raise rates and take the inevitable hit on growth and financial stability, or let the problem slide and watch inflation slip further. With double-digit inflation hovering on the horizon, some central banks are beginning to act.Does the idea of double-digit inflation sound too alarmist? Last month, the RPI inflation rate was only at 4.3 percent; at least 5 percentage points south of a double-digit rate. Looking at today’s inflation rate is like trying to drive by only looking in the rear view mirror. Inflation is a forward-looking phenomenon, and therefore central banks should look at expectations when formulating policy. In the absence of a credible policy response to rising prices, private sector expectations are adjusting rapidly upwards. …
Original Source: ukhousebubble.blogspot.com

The market for oil is undergoing a fundamental change. Previously, the OECD was the primary consumer; today, demand is shifting towards emerging market economies.Compared to a year ago, OECD countries demanded about a million barrels of less today. However, non-OECD countries more than made up the shortfall, demanding an additional 1.5 million barrels. The net effect was to increase overall demand by 0.5 million barrels a day….
Original Source: ukhousebubble.blogspot.com

For more than two years, the skeleton of the Elevation Chandler project has stood near the Chandler Fashion Mall, a monument of sorts to the late, great real estate market in Phoenix.  Now it looks like Chandler could have another "ghost development" just down the road: [Thanks M!]

Construction equipment is off and workers have left what was supposed to be a 21-acre project called Chandler Piazza, a Tuscan-style mall with a hotel, shops, restaurants and offices….
Original Source: housingdoom.com

Note: this video is from the WaPo - this is the first time I’ve tried to embed one of their videos, and I hope it works OK.

Here is Dana Milbank’s article: The Economy? Words Fail Me. Think you’re worried about the economy? Phillip Swagel is a wreck. Here is the video. I think Swagel did fine given what he had to sell (a bad jobs report) … more Milbank: For a brief, joyous moment for the…
Original Source: feeds.feedburner.com

Well, we’re a little late to the show, so grab yourself some popcorn and a seat, and enjoy the ride!…
Original Source: victoriastruth.blogspot.com

Just want to remind all of you on this Independence Day weekend as you go to picnics and talk to your neighbors and friends do not forget to bring up the fact that the worst of the housing market is yet to come.Many of you folks on the sidelines 2 years ago were mocked, made fun of, looked at in disbelief that you could not afford to buy a house that met your expectations.What a difference 2 years makes. Today those of us with cash saved up, no credit card or HELOC’s bills up to our ears can be the seen as the smart ones, while the folks who you privately wondered how in the hell can they afford this place avoid the subject completly. Why? Because well they CANNOT afford the place….
Original Source: bubblemore.blogspot.com

Diversion: Worthwhile feature in today’s paper by columnist Chris Erskine about what it’s like to spend a night in the apartments above Rick Caruso’s new Americana at Grand complex in Glendale. In other words, what it’s like to live upstairs from the Cheesecake Factory.
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Original Source: feeds.latimes.com

From Bloomberg: Fed Cuts Bear Stearns Asset Estimate to $28.9 Billion The Federal Reserve said the portfolio of Bear Stearns Cos. assets it accepted as part of the firm’s takeover by JPMorgan Chase & Co. is now worth $28.9 billion, down from the $30 billion estimated in March.

The central bank cut the “fair value” of the assets by 3.7 percent as of June 26, the Fed said today in Washington. ….
Original Source: feeds.feedburner.com

Regional bank Marshall & Ilsley expects a $900 million loss provision: M&I expects to take a 2008 second quarter provision of up to $900 million … This provision is expected to be approximately $485 million in excess of expected 2008 second quarter charge- offs of up to $415 million.
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"The continuing deterioration in the housing market, particularly in Arizona, on Florida’s west coast and in…
Original Source: feeds.feedburner.com

Marble House — The Knife
Are the high-end homes in Irvine plated with marble? The asking prices would make you think so. Today’s featured property was purchased by a knife catcher at auction. No improvements have been done to the property — no marble — and now they want $260,000 for their efforts. Oh wait, they made no effort. They just want $260,000 just because. This is the kind of behavior that makes house prices unaffordable, and it is exactly the kind of behavior this market is going to crush out of existence. 
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Original Source: feeds.feedburner.com

Whenever Tanta doesn’t post for a few days, I receive several emails asking about the health of my good friend and co-blogger. Thanks to everyone for your thoughts and concern.

First, Tanta posted as recently as Tuesday: When In Doubt, Blame the Accountants

Second, I spoke with her at length on Monday, and she assured me she is OK. Her health is a private matter, but she has disclosed this…
Original Source: feeds.feedburner.com

This picture shows idle construction trailers in the Inland Empire. It comes from Sandler O’Neill & Partners analyst Aaron Deer’s r…
Original Source: feeds.latimes.com

The Missoulian reports from Montana. “Larry Melia and his wife are getting ready to auction off a house in the Bitterroot they have been restoring for the past six years. This is the first time the Melias, who renovated and sold ranches in Denver before moving to Montana, have participated in a national house auction. Tommy Bone, VP of the National Auction Group Inc., said a local person might bid on the property, but he’s expecting someone from Los Angeles, Seattle or another out-of-state location to purchase it as a second home.”
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Original Source: thehousingbubbleblog.com

Back in October 2004, Fed economist John Krainer and researcher Chishen Wei wrote a Fed letter: House Prices and Fundamental Value.

Kainer and Wei presented a price-to-rent ratio using the OFHEO house price index and the Owners’ Equivalent Rent (OER) from the BLS.

Here is an update to their graph.

Click on image for larger graph in new window.

This graph shows the price to rent ratio (Dec…
Original Source: feeds.feedburner.com

Aubrey Cohen reports on some interesting population growth data just released by the state Office of Financial Management.
…difficulty selling homes elsewhere has slowed population growth here over the past year, according to new estimates from the state Office of Financial Management.
Seattle and King County grew 1.1 percent and 1.2 percent, respectively, between April 1, 2007, and April 1, 2008, down from growth rates of 1.3 percent and 1.4 percent the previous year. Seattle is now home to 592,800 of King County’s 1.88 million residents.
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Original Source: feeds.feedburner.com

Posted By:Diana OlickSo Hope Now is doing well. But in all the data and arguing over the data, let’s look at the data for a second. Of the 170,000 mortgages saved in May, 100,000 were repayment plans and 70,000 were modifications.   …
Original Source: www.cnbc.com

Rates on 30-year fixed mortgages fell for the first time in three weeks after the Federal Reserve said last week that it expects inflation to level off, according to mortgage backer Freddie Mac.
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Original Source: money.cnn.com

News item: A foreclosure-prevention bill headed for the governor’s signature in Sacramento requires the owners of foreclosed homes — banks and lenders — to maintain the properties. It’s not clear that such a law would be enforced (who inspects foreclosed homes?), but this is a start. F…
Original Source: feeds.latimes.com

Rates on 30-year fixed mortgages fell for the first time in three weeks after the Federal Reserve said last week that it expects inflation to level off, according to mortgage backer Freddie Mac.
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Original Source: money.cnn.com