Monday, April 25, 2016

OCHN: Why aren"t homebuilders producing more homes?

Homebuilders won’t build what they can’t sell, and household formation isn’t so robust that builders must provide more to keep pace with demand.

Since 2012 the financial media chronicled the reflation of the old housing bubble but portrayed it falsely as a robust recovery...
Why aren"t homebuilders producing more homes?



Saturday, April 23, 2016

OCHN: San Bernardino County Housing Market Report: April 2016

IRVINE, Calif., January 2, 2016 – OC Housing News
San Bernardino County Housing Market Report: January 2016
Historically, properties in this market sell at a 25.7% discount. Today’s discount is 32.2%. This market is 6.6% undervalued.
Median home price is $280,200 with a rental parity value ...
San Bernardino County Housing Market Report: April 2016



Friday, April 22, 2016

OCHN: How "sophisticated" financial managers operate personal Ponzi schemes

In its simplest form, a personal Ponzi scheme is borrowing money to pay debt service: acquiring new debt to pay old debt. It’s a path to disaster.

What is a personal Ponzi scheme? Aren’t Ponzi schemes the advanced financial management crime of sophisticated money managers like...
How "sophisticated" financial managers operate personal Ponzi schemes



Thursday, April 21, 2016

OCHN: Two strategies for more abundant and less expensive housing

By reducing local regulatory hurdles to new development, and by providing subsidies to low-income Americans, the free market will provide more housing that will drive down costs for everyone.


Housing costs too much in the United States because we don’t provide enough housing to meet...
Two strategies for more abundant and less expensive housing



Wednesday, April 20, 2016

OCHN: Could you live in a less than 300 square feet?

The tiny house movement is the extreme of housing and possession austerity. Would anyone with the means to live with more chose to live that way?

When builders and developers create new projects, they generally produce a variety of floorplans to meet a market niche where they can reasonably...
Could you live in a less than 300 square feet?



Tuesday, April 19, 2016

OCHN: Home mortgage interest deduction no longer benefits anyone

Only high wage earners save on taxes due to the home mortgage interest deduction, and the benefit is lost due to higher house prices paid be everyone utilizing this tax subsidy.

Does the home mortgage interest deduction serve any useful purpose? Usually, when the government subsidizes...
Home mortgage interest deduction no longer benefits anyone



Monday, April 18, 2016

OCHN: What four factors really determine prices in the housing market?

There are four fundamentals that determine resale value: borrower income, allowable debt-to-income ratios, interest rates, and down payment requirements.


When economists write about the fundamentals of housing, they usually mention job and wage growth, both of which impact sales (of special...
What four factors really determine prices in the housing market?



Friday, April 15, 2016

OCHN: Real estate investors are NOT crowding out family homebuyers

The National Association of realtors perpetuates the myth that investors are scooping up family homes and leaving potential buyers out in the cold.

Many investors use the OC Housing News to search for properties because it provides a detailed investment analysis of every home available for sale...
Real estate investors are NOT crowding out family homebuyers



Thursday, April 14, 2016

OCHN: A decade ago, housing bulls were completely and catastrophically wrong

Back in 2006 the housing bulls weren’t just a little wrong. They were completely and totally and unequivocally incorrect in every way.

I recently had a conversation with a CEO of a large housing market forecasting company. In our conversation, I told him about my experience as a housing...
A decade ago, housing bulls were completely and catastrophically wrong



Wednesday, April 13, 2016

OCHN: Today"s homebuyers unwilling to climb the property ladder like previous generations

People shopping for houses today are unwilling to purchase substandard housing in hopes of trading up at some later date.

Houses are expensive. Many renters would like to buy a house, but they lack the down payment necessary, and many renters are early in their careers when their income...
Today"s homebuyers unwilling to climb the property ladder like previous generations



Tuesday, April 12, 2016

OCHN: Big banks are too big to innovate

If an institution is too big to fail, then it must not be allowed to take innovative risks because the potential consequences for the economy are dire.

Innovation entails risk. Any profitable business venture that is widely known to be successful is rife with competitors, so profit margins...
Big banks are too big to innovate



Monday, April 11, 2016

OCHN: Which generation was hurt the most by the housing bust?

Generation X was hurt more than the Baby Boomers or the Millennials by the housing bust because many Generation Xers lost their starter homes, and many others are still trapped in them.

The Baby Boomers lost their retirement savings.
The Millennials can’t afford to enter the housing...
Which generation was hurt the most by the housing bust?