OCHN: US housing market finds strength in the eye of a financial hurricane

The US housing market starts 2016 with a strong economy, low unemployment, improving wage growth, and very low mortgage rates: A recipe for strong sales and price increases.


The US Housing market is poised for a strong start in 2016. The underlying economy was strong enough for the federal...
US housing market finds strength in the eye of a financial hurricane

OCHN: San Bernardino County Housing Market Report: February 2016

IRVINE, Calif., February 1, 2016 – OC Housing News
San Bernardino County Housing Market Report: February 2016
Historically, properties in this market sell at a 25.7% discount. Today’s discount is 31.4%. This market is 5.7% undervalued.
Median home price is $279,600 with a rental parity v...
San Bernardino County Housing Market Report: February 2016

OCHN: The invisible force building wealth across America

Today’s homeowners are paying down mortgage faster than ever before as rapid loan amortization builds wealth across America.

Which is better for accumulating equity, lower prices or lower interest rates? Both lower the monthly cost of ownership and result in more disposable income....
The invisible force building wealth across America

OCHN: Should evictions be banned to stop hurting people"s feelings?

Some foreclosure and eviction cases can be heartbreaking. However, we live by rule of law in this country, and unless we want to start giving away real estate to those with the saddest story, these evictions must take place.

Property evictions cause severe emotional pain for the dispossessed....
Should evictions be banned to stop hurting people"s feelings?

OCHN: The secret financial strategy only the wealthy and prudent follow

Paying off debt early is a far superior long-term financial plan than continually adding to mortgage debt to support an extravagant lifestyle.

Most people believe they achieve the American Dream when they buy a house, but most often they only buy 3.5% to 20% of a house, not the whole thing....
The secret financial strategy only the wealthy and prudent follow

OCHN: Land contract sales: helping the poor, or screwing them?

Land installment contracts provide a viable path to homeownership, but they are fraught with abuse.

In yesterday’s post, Three calculations every real estate investor must know, I discussed my personal criteria for buying rental investment properties. Everyone who actively invests has...
Land contract sales: helping the poor, or screwing them?

OCHN: Three calculations every real estate investor must know

The three main measures of financial performance for rental real estate are capitalization rate, cash-on-cash return, and internal rate of return.

When people buy a personal residence, they often solace themselves that the high prices is warranted because the property is a “good...
Three calculations every real estate investor must know

OCHN: Riverside County Housing Market Report: February 2016

IRVINE, Calif., February 2, 2016 – OC Housing News
Riverside County Housing Market Report: February 2016
Historically, properties in this market sell at a 18.5% discount. Today’s discount is 23.5%. This market is 5.0% undervalued.
Median home price is $305,500 with a rental parity value of ...
Riverside County Housing Market Report: February 2016

OCHN: OC Homebuilders see flat pricing as best-case scenario

Analysts working for homebuilders see a flat market with weak sales as the likely future for OC Homebuilders.


At first low MLS inventory was a boon to homebuilders, but housing market manipulations give homebuilders false signals, so Orange County homebuilders oversupplied the market, and as...
OC Homebuilders see flat pricing as best-case scenario

OCHN: Top five secret reasons to use FHA financing

Most borrowers don’t realize the hidden benefits of using FHA financing they can use to game the system to their advantage.

Most first-time homebuyers use FHA financing because they lack better alternatives. FHA insured loans carry weak qualification standards (they accept FICO scores...
Top five secret reasons to use FHA financing

OCHN: Manipulating for-sale home supply succeeded wildly for bankers

Reducing the number of homes for sale was the essential ingredient to bail out bankers and loanowners whose foolish behavior caused the housing bubble.

From early in the housing bust, I knew that how the banking cartel disposed of their REO would determine the fate of the housing market. Since...
Manipulating for-sale home supply succeeded wildly for bankers

OCHN: San Francisco housing bubble 4.0

The housing bubble in San Francisco is the fourth unsustainable price rally in the last 45 years. The only question is when the correction will happen and how deep it will go.

In the ashes of the first technology bubble, the term web 2.0 was coined to describe the new and improved mania...
San Francisco housing bubble 4.0

OCHN: Collapsing stock market may spawn a huge rally in real estate

Investors move out of stocks and into safe investments like government-backed mortgages, lowering rates and increasing housing demand.

For the last several years, the real estate market observers awaited the imminent rise in mortgage rates sure to trigger a price crash. While the spike from...
Collapsing stock market may spawn a huge rally in real estate

OCHN: Get up to 1.5% cash back at Irvine Eastwood Village Grand Opening

Do you want free money? 
If you buy a home from a homebuilder without an agent, you pay full price.
If you buy a home with us as your agent, you get 1.5% back.
Same house, but 1.5% of the purchase price refunded back to you.
It’s free money! Take it! 
As a bonus, you get full agent rep...
Get up to 1.5% cash back at Irvine Eastwood Village Grand Opening

OCHN: Is home ownership a privilege or an entitlement?

Though realtors and politicians like to present home ownership as an entitlement, it’s really a privilege bestowed on those who can sustain it.


We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights,...
Is home ownership a privilege or an entitlement?

OCHN: Will a devalued Chinese Yuan crush new home sales in Orange County?

As the Yuan declines in value, houses become increasing expensive to Chinese Nationals, prompting further erosion of new home sales to this large buyer group.

Last month I asked Will the slowdown in China hurt Irvine real estate? There is little doubt that stopping the flow of Chinese capital...
Will a devalued Chinese Yuan crush new home sales in Orange County?

OCHN: A housing bear mauls Las Vegas

House prices should continue to rise in Las Vegas as cloud inventory supply restrictions and undervalued conditions persist.

Back in 2010 when house prices were crashing, I advised people to buy Las Vegas real estate because I believed it was a good value. With house prices at 1995 levels, even...
A housing bear mauls Las Vegas

OCHN: Is pent-up housing demand real or a realtor fantasy?

Some normal housing demand was delayed to the recession, but no great influx of demand is likely forthcoming.

Pent-up demand is the idea that many, many more people would participate in a financial market if some temporary barrier were removed, a barrier currently preventing them from...
Is pent-up housing demand real or a realtor fantasy?

OCHN: HELOC abuse rising along with house prices

As house prices rise and more homeowners possess equity again, some are withdrawing this money at low rates and spending it, stimulating the economy.

During the housing mania, people bought homes because house prices rose rapidly, and lenders gave equity to homeowners at 100%+ of the value set...
HELOC abuse rising along with house prices

OCHN: Get up to 1.5% cash back on a Portola Springs new home

Do you want free money? 
If you buy a home from a homebuilder without an agent, you pay full price.
If you buy a home with us as your agent, you get 1.5% back.
Same house, but 1.5% of the purchase price refunded back to you.
It’s free money! Take it! 
As a bonus, you get full agent rep...
Get up to 1.5% cash back on a Portola Springs new home

OCHN: Surprising way rising mortgage rates harm existing homeowners

Higher mortgage interest rates will reduce future demand. Today’s homeowners will not experience the home price appreciation enjoyed by the previous generation.

Many would-be homeowners rush to the market to lock in low mortgage rates out of fear of being priced out forever. They fear...
Surprising way rising mortgage rates harm existing homeowners

OCHN: Will beach community home ownership premiums increase without end?

Coastal community real estate is more expensive relative to rent than it’s ever been. A bubble perhaps?

Very expensive real estate dominates Coastal California communities. The narrow strip of land within a mile or two of the ocean is one of the most desirable climates in the world, and...
Will beach community home ownership premiums increase without end?

OCHN: What is the best financial reason to buy a home? (Hint: it"s not what most think)

Contrary to popular belief, capturing home price appreciation is not the best financial reason to own real estate.


Many people want to own their homes because they believe the property will rapidly go up in value, providing them an endless stream of free money they can spend on anything they...
What is the best financial reason to buy a home? (Hint: it"s not what most think)