Housing Policy

/Tag:Housing Policy

Foreign Buyers Still Flooding U.S. Real Estate Market

The the volume of foreign buyers buying U.S. residential real estate rose dramatically during the latest 12-month survey from the National Association of Realtors. The 2017 Profile of International Activity in U.S. Residential Real Estate shoes that the dollar volume of purchases by foreign buyers rose from $102.6 billion in 2016 to $153 billion in the latest 12-month period ending in March. In all, foreign buyers purchased 284,455 U.S. residential properties accounting for 5 percent of existing home sales and 10% of existing home sales by dollar volume. If you were wondering what's been driving the [...]

Reign Of Economic Error Continues To Plague Housing Market

The reign of economic error holding back the U.S. housing market was on display again this week. New home sales for December came in well below estimates, falling 10 percent from the November euphoria. The National Association of Realtors reported that existing home sales softened to a seasonally adjusted annual rate of 5.49 million in December. That was a 2.8 percent decline from the previous month, and roughly flat from the previous year. Year-over-year declining mortgage rates for most of 2016 helped to make it the best year for existing home sales since 2001, but [...]

Fed Looks At Texas’ Affordable Housing Problem, Fails To Look In The Mirror

The Federal Reserve can be commended on one thing. They never cease to provide entertainment in terms of their complete ineptitude and functional obsolescence. The Fed continues to show no remorse for the damage they have inflicted on the general population and their destruction of what was formerly known as the U.S. housing market. The latest comedy from the Fed comes courtesy of the inaugural report from the Dallas Federal Reserve Community Outlook Series titled 'The Scarcity of Texas Affordable Housing' In this fun-filled trip down the rabbit hole, the Fed examines the problem of the lack [...]

NAR: Existing Home Sales Fizzle In February As Affordability Evaporates

The National Association of Realtors reported that existing home sales fizzled in Februrary, falling to a seasonally adjusted annual rate of 5.08 million. This was a sharp decline from January numbers but 2 percent higher than a year ago. NAR's chief economist, Lawrence Yun, mentioned the stock market, poor weather on the East coast, as well as supply and affordability issues. At least he got one of the four correct! The real problem surrounding the U.S. real estate market is a lack of affordability. Home prices have been levitated back to the previous bubble levels [...]

Million Dollar Homes Sit Rotting In Vancouver As Authorities Ignore Illicit Money Flows

Earlier this year the government suggested it would start looking into the mystery buyers of luxury homes in certain U.S. real estate markets. Miami-Dade County and Manhattan were two of the high priced American markets where the Treasury Dept said it would start tracking all-cash purchases by shell corporations. Apparently U.S. authorities think now is as good a time as any (better late than never right?) to provide at least the appearance of concern about money laundering in U.S. real estate. It's not exactly a secret that the United States has been a very friendly [...]

Million Dollar Shack: Insanity In Silicon Valley Drives Middle Class Families Out Of The Market

This is nice little documentary from Michelle Joyce, a middle-class mom living in Silicon Valley. Michelle does a nice job bringing the issues of our national housing policy into the public conversation. Michelle and her husband, like many of their friends, have been priced out of the neighborhood. Unfortunately current housing policy continues to favor wealthy tech titans and investors from overseas bringing in large sums of cash. Of course I doubt any of the Realtors are asking where the cash came from and whether it was brought into the U.S. illegally. I was particularly [...]

By | 2015-10-26T19:37:39+00:00 October 26th, 2015|Housing Policy, Real Estate, Spin Cycle, Video|0 Comments

San Francisco Median Home Price Hits $1 Million

The race for the most expensive real estate in the U.S. entered a new chapter this summer as the median price of a home in San Francisco hit $1 million. According to DataQuick, the median price of a home in the bay area eclipsed the seven-figure mark in June. The new mark for nose-bleed real estate prices could have been facilitated by all those wealthy Chinese buyers bearing briefcases stuffed with cash. That wouldn't be surprising development since the average price of new homes in China has fallen for a second consecutive month. The property bubble blown by China [...]

By | 2014-07-18T12:00:50+00:00 July 18th, 2014|Economy, Housing Policy, Real Estate|0 Comments

BOA Merrill Analysts Want Fed To Continue Propping Up Housing Market

Interesting to see that some other people are finally starting to catch on to reality. In a rather lengthy diatribe last week, I spelled out what's still plaguing the U.S. real estate sector and why a continued recovery in housing will be difficult. It appears two Bank of America Merrill Lynch analysts are worried about the real estate market as well. While the Fed’s seeming communication stumble and the bear flattening dominated this week’s news, we view the ongoing weakness in mortgage purchase application activity as the main story."..."Until proven otherwise, these numbers are awful, and [...]

Wall Street’s New Rental Empire

It's no secret that large institutional investors like Blackrock and others have poured into the U.S. real estate market. What many people don't fully appreciate are the long-term implications for the housing market.  The distortions caused in many U.S. real estate market by an influx of all-cash buyers courtesy of the Wall Street bailout machine are bad in and of themselves.  The news that Wall Street now wants to securitize pools of rental property cash flow is even more disturbing. But even that only scratches the surface of the complexities surrounding our current real estate markets.  [...]

By | 2013-12-17T15:02:55+00:00 November 26th, 2013|Economy, Housing Policy, Mortgage Rates, Real Estate, Spin Cycle|1 Comment

Rising Rents In Houston Area Create Burden On Working Families

The recent run-up of both home prices and single family rents in the Houston area is welcome news for anyone watching the equity in their home.  The flip-side of that equation is the rising burden of housing costs created for working class families who are falling behind in terms of median and average wage gains. In the May update from the Center For Housing Policy, Texas is one of the many states where rising housing costs have taken a larger bite out of working families' paychecks.  The latest study noted that 21 percent of Texas [...]

By | 2013-05-03T01:11:32+00:00 May 3rd, 2013|Economy, Housing Policy, Real Estate|0 Comments