A Divergence From Underlying Fundamentals

Readers suggested a topic on housing shortage. "I know Ben just made a statement yesterday that there is no housing shortage anywhere. Here is my simple question: If there were a housing shortage in a particular market (physical homes vs. people who want to live there), how would that condition...
Read more (79 comments)

There's A Frenzy Going On

It's Friday desk clearing time for this blogger. "Scott Mednick recently bought a fixer-upper home in Mission Viejo for $389,000. After investing $60,000 on renovations, he sold it for $545,000 — netting nearly $100,000. When prices and sales were slow, from 2007 to 2009, would-be investors were...
Read more (66 comments)

Borrowers Are Getting Some Cash Out Again

KGO TV reports from California. "Despite rising interest rates, there's been a frenzy of home buying activity in San Francisco. That has some real estate experts concerned the market could be overheated. Brian Miller saw first hand how frantic the housing market in San Francisco can be right now....
Read more (55 comments)

People Have Realized You Can Lose A Lot Of Money

Some housing bubble news from the Washington Post. "President Obama came here shortly after his first inauguration 41 / 2 years ago, pledging to arrest a tide of home foreclosures and to stabilize the deeply wounded housing market. The next few years were a personal and political embarrassment for...
Read more (75 comments)

Ghosts Of Their Former Selves

The News Press reports on Florida. "One hotbed of spec building is Fort Myers Beach, where new construction was a rarity until a sudden burst of activity. 'I sold more waterfront lots this season than I’ve ever sold in Fort Myers' including some to investors, said Trae Zipperer of Luxury Property...
Read more (91 comments)

What Happens If It Happens Again?

A report from Maine Biz. "Multifamily homes are selling as soon as they hit Portland's hot housing market. 'Rates are still really low. I thought it was a smart idea to buy and looked for something that will pay for itself,' says Amy Mullen, 25, a marketing manager. She recently bought a...
Read more (45 comments)

The First Rule Of Lifesaving

A reader suggested a topic on eminent domain. "Several California cities (most recently Richmond, CA.) have proposed using eminent domain to seize and restructure blocks of underwater houses then sell them back to the mortgagees at fair market value (minus a percentage incentive to the banks or...
Read more (67 comments)

The Ugly Face Of Greed Will Drive Prices Down

It's Friday desk clearing time for this blogger. "Glendale home prices shot up 31 percent in the last year, according to a report from Arizona State University. Surrounding areas, such as Youngtown and El Mirage, also have seen large jumps. Two things are happening: Demand for homes is increasing...
Read more (33 comments)