Everywhere you look, people are saying that housing is recovering. But exactly what is a housing recovery? Think about it… does a housing recovery mean a return to peak bubble home prices? Or peak number of existing home sales? Or peak new home sales? Or contribution to GDP? Does it even mean a return to […]
Bottom-pickers have smelly fingers. Ever since the first local home price declines of 2006, there have been groups calling the bottom. Realtors, mortgage brokers, home builders, and various economists crawl out of the woodwork each Spring to announce that home prices are about to start going up. Their logic is always flawed, their data too […]
No matter how you look at home price data, it is simply too high to be sustained in Orange County.
There is still very little housing that’s a good deal to buy in the San Francisco area. You can rent the equivalent of the vast majority of houses for sale there much more cheaply than the monthly cost of owning the same thing. Most owners in the SF area are losing hundreds or thousands of dollars per month compared to renting, and prices are still declining as well, to add insult to monthly injury.
Government efforts to prop up the market have only served to reduce sales volumes and eliminate an important component of the move up market.
I would argue that many of the people who think that now is the time to invest in the lower-end simply haven’t spent much time there. If they did, they would know that most of the residents are just barely hanging on.
In what should be no surprise, the Economist rates Australia #1, followed by Hong Kong, Spain, Sweden, France, and Great Britain. Supposedly, US home prices are undervalued and Japan (having gone through decades of deflation), the most undervalued.