Wednesday, December 7, 2016

How to make California homes affordable by discouraging foreign investment

If California wanted to lower house prices, it could tax foreign investment and tax homes left vacant year-round.

The primary reason house prices are so high in California is a lack of supply. However, a secondary reason is the influx of foreign investors, many of whom don’t live in the...

How to make California homes affordable by discouraging foreign investment

Tuesday, December 6, 2016

Orange County housing transitioning from single-family homes to high-density condos

Orange County is no longer an LA County bedroom community. High-density condos overtake suburban detached homes as the dominant housing type.

I recently noted that The FHA loan limit dooms McMansions in California. The FHA loan limit creates a down payment barrier that first-time homebuyers ...

Orange County housing transitioning from single-family homes to high-density condos

Monday, December 5, 2016

How the fate of the housing policy hinges on an arcane Senate rule

Whatever legislation Congressional Republicans try to pass will be “talked to death” by Democrats in the Senate.

No one knows what Donald Trump will do as President, but since he is an egocentric dealmaker, it’s likely that he will want to sign legislation — even bad...

How the fate of the housing policy hinges on an arcane Senate rule

Friday, December 2, 2016

The FHA loan limit dooms McMansions in California

McMansions are no longer affordable or easily financeable in California, so builders will likely build fewer of them.


Urban planners and environmentalists advocate high-density development near transit hubs. They entreat us to screeds outlining the demerits of McMansions, and extoll the...

The FHA loan limit dooms McMansions in California

Thursday, December 1, 2016

Prudent credits standards averted nearly 1,000,000 future foreclosures

Lenders wisely stopped from granting loans to nearly 1,000,000 unqualified borrowers over the last 6 years.

Many people blame the last housing bubble on lenders and subprime borrowers. Lenders abdicated their responsibility to vet their borrowers’ qualifications, and not surprisingly,...

Prudent credits standards averted nearly 1,000,000 future foreclosures

Wednesday, November 30, 2016

A Bernie Sanders sock puppet defeats a San Francisco condo development

Local officials in San Francisco denied a sound building project due to angst over Donald Trump’s election and the persuasion of a Bernie Sanders sock puppet.

Nimbys oppose new developments for two reasons. First, they don’t want to deal with more people in their neighborhoods and...

A Bernie Sanders sock puppet defeats a San Francisco condo development

Tuesday, November 29, 2016

Corrupt Chinese elites pillage working class landowners

Local Chinese government officials and real estate developers corruptly conspire to take land from peasants without just compensation.

In most countries around the world, a legal process known as eminent domain exists for taking private land for public purposes. Without eminent domain, we...

Corrupt Chinese elites pillage working class landowners

Monday, November 28, 2016

Coastal California down payments decrease by $8,520 on select homes in 2017

The conforming loan limit is set to rise by 10,650 in Coastal California, reducing down payment requirements by $8,520 on homes prices above this limit.

During the housing bubble, the conforming limit rose as high as $417,000, but when the housing bubble burst, this limit was raised to $729,750...

Coastal California down payments decrease by $8,520 on select homes in 2017

Wednesday, November 23, 2016

Is another wave of foreclosures coming?

The mortgage and foreclosure debacle of 2008 was cut short by government intervention. A second round of deferred distressed sales is yet to hit the market.

Is the mortgage and foreclosure crisis resolved or merely delayed? Americans believe the mortgage and foreclosure crisis of 2008 is over, ...

Is another wave of foreclosures coming?

Tuesday, November 22, 2016

How to sell a house for $100,000 profit and still lose money

Most homeowners ignore the carrying costs during their ownership period when they calculate the gain or loss on a sale.

If someone claims they bought a house for $900,000 and sold it for $1,000,000, how much money did they make? $100,000? No, not even close.
People tend to forget about the...

How to sell a house for $100,000 profit and still lose money

Monday, November 21, 2016

California NIMBYs don"t love their children

California nimbys prevent the construction of housing needed for the next generation of Californians.

Last month I wrote about how American Dream equates with home ownership, and the California Dream resembles the exclusionary policies of the landed gentry of Elizabethan England. Like the wo...

California NIMBYs don"t love their children

Will the Federal Reserve allow the economy to run hot?

At this point in history, the benefits of an overheating economy outweigh the detriments of a little inflation.

The Federal Reserve controls the economy’s gas pedal. They can step on the pedal by lowering rates to inject more fuel into the economic engine. They can also let off the gas by...

Will the Federal Reserve allow the economy to run hot?