Housing

“Foreclosure Rebound Pattern”: Foreclosures SUDDENLY Jump 57% in California (And Soar In Much Of The Country)

by Wolf Richter •  • Comments Off on “Foreclosure Rebound Pattern”: Foreclosures SUDDENLY Jump 57% in California (And Soar In Much Of The Country)

The cynic in me says the dizzying jump in foreclosure starts in January in much of the country, after years of sharp and consistent declines, must be some kind of data problem. Maybe RealtyTrac’s computers got hacked, or something. But that’s wishful thinking.

The Exquisitely Reengineered Frankenstein Housing Monster

by Wolf Richter •  • Comments Off on The Exquisitely Reengineered Frankenstein Housing Monster

It’s back, a new and improved contraption, a synthetic structured security that on its polished surface looks like that triple-A rated mortgage-backed toxic waste that helped blow up the banks and your 401(k) in 2008. But this time, it’s different. It’s even worse.

Housing Bubble 2.0 Hits Messy Resistance In California

by Wolf Richter •  • Comments Off on Housing Bubble 2.0 Hits Messy Resistance In California

The salary you must earn to be able to buy the median home in San Francisco is $125,071. That home costs $705,000 – up 24% from a year ago. San Francisco tops the list of the most unaffordable cities. Households earning the median income of $51,000, well, forget it.

The Magic for Our Hapless Renters

by Wolf Richter •  • Comments Off on The Magic for Our Hapless Renters

Prices for housing have jumped and rents have jumped too, yet the 38.7 million renters, 34% of all households, watched with dismay as their real wages declined.

Cracks Forming In Housing Bubble II (But This Time It’s Different)

by Wolf Richter •  • Comments Off on Cracks Forming In Housing Bubble II (But This Time It’s Different)

Number one is Palo Alto, epicenter of Silicon Valley craziness, where home prices are now 40% higher than they were at their prior bubble peak. What are we calling this phenomenon? Bubble? Nope. “Housing recovery.” But the middle class has hit a wall.

The Multi-Pronged Mortgage Debacle Next Year (So Long, “Housing Recovery”)

by Wolf Richter •  • Comments Off on The Multi-Pronged Mortgage Debacle Next Year (So Long, “Housing Recovery”)

Now part three, after soaring home prices and mortgage rates. It was drowned out by the hullaballoo over the Fed’s taper announcement. It came from Fannie Mae and Freddie Mac. It will drive up mortgage payments even more.

“A Feeding Frenzy, A Mad Dash To Snap It Up” – House Flipper

by Wolf Richter •  • Comments Off on “A Feeding Frenzy, A Mad Dash To Snap It Up” – House Flipper

You can’t get away from it. The media fawn over it. Rational neighbors drool unexpectedly. Ads flood the airwaves. “Learn our simple three-step system on how to flip homes,” the announcer says. Everyone knows: untold riches are waiting for you. “Right here in the Bay Area,” he says. It’s hot, so hot that people will get burned. And banks will get hit (again).

Whose Capital Will Get Destroyed? Wall Street Tries To Cash Out Of Newfangled “Asset Class”

by Wolf Richter •  • Comments Off on Whose Capital Will Get Destroyed? Wall Street Tries To Cash Out Of Newfangled “Asset Class”

Oaktree Capital and Carrington Mortgage are trying to dump a portfolio of 500 single-family homes they’d bought out of foreclosure. They’re trying to get the heck out of the once hot buy-to-rent trade. Blackstone, which gobbled up 32,000 of these homes, is trying to get its money out. They all are. That trade is turning sour. Trouble in the housing market!

Was The Fed Scared Of This Graph?

by Wolf Richter •  • Comments Off on Was The Fed Scared Of This Graph?

When the Fed shied away from tapering its $85 billion a month in asset purchases, while simultaneously downgrading the economy for the third time this year, it gave the impression of being mired in fear. It has many reasons to be afraid. But one in particular.