Nov 18 2008

Southern California Home Prices at a 67 Month Low: Sales Jump Unseasonably due to Major Price Cuts.

The recent data for the Southern California housing market was released today.  A pattern is starting to emerge.  Low price homes are helping to increase sales and lower priced areas are also pulling the median price down for the entire region.  This is symbolic of the drastic price reduction we have witnessed over the past year.  Over half of the homes sold in Southern California last month were foreclosure resales.  These of course will have lower prices simply because they are being sold at rock bottom prices.  Lenders and banks with a large number of REOs cannot be picky if they want to move homes.

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Nov 16 2008

New York City Housing Prices Holding Strong: Will the Financial Collapse Bring Prices Down?

New York City is a unique city for many reasons.  It is the heart of the United States financial system and now, the target of much of the blame being heaped onto Wall Street.  Before we look at actual raw numbers for the city and zip codes, let us first do a quick analysis of the financial industry in New York City.

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Nov 15 2008

Economic Crisis Unintended Consequences: Moving Back with Ma and Pa…And Grandma and Grandpa.

There may be a bright spot in some of this economic mess.  All that McMansion inventory may be suited to housing extended families.  Many people are now finding out that it isn’t too late or too early to move back with your extended family because of economic reasons.  Here in California, we’ve heard many stories of recent college graduates who moved back home because they couldn’t find work.  But here we have established workers suddenly losing their jobs and needing to find a way to make ends meet:

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Nov 12 2008

TARP Readjustment: California, Florida, Nevada, and Arizona on a Financial Economic Island. Those Option ARM Loans Are Your Problem.

The morphing financial crisis has taken a major change today.  Henry Paulson came out today announcing that the main component of the $700 billion bailout plan will no longer be the centerpiece.  If you recall a few weeks ago with the highly unpopular bailout, the major contention was that much of the money would be allocated to purchasing highly toxic mortgages from irresponsible lenders.  But as the economic landscape quickly shifted, that idea has now been shelved.

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