CNBC says “7 major housing markets now ‘overvalued'”. Amazingly, Silicon Valley isn’t one of them. Maybe the Valley has finally turned the economists into believers. Or maybe it’s finally worn them down.
Cities that are on the “overvalued” list? You’d never guess.
Okay, so you’ve probably heard about “serial borrowers”: homeowners who, back in the easy credit days of the early 2000s, refinanced repeatedly to draw equity out of their homes. Lenders assured them that since “California real estate always appreciates”, they could avoid the downside of rock-bottom “teaser rates”, higher loan payments or negative amortization, by selling or refinancing.
Last Thursday at a party celebrating the opening of the local branch of a national mortgage lender, the manager and I were talking about the mid-Peninsula real estate scene, a scene that even real estate’s biggest boosters acknowledge is running hot. I asked the manager, who’s been an active loan agent for years, how long he thought this market will last. He eyed me warily and shot back, “What are you seeing that makes you think it’s going to end?”
My gut tells me that there’s never been a more challenging time to buy than now.
The latest attempt to identify the source of America’s fatal malaise, a topic almost as old as the Republic itself, is commentator David Brooks’ op-ed piece in the February 10 edition of The New York Times.
Brooks makes an interesting and seemingly compelling case…
Less than a year after a certain grassroots movement, which seems to consist mostly if not solely of one Midwestern attorney, denounced Nationwide Open House Weekend as a tool of the Devil, also known as the National Association of Realtors, and urged right-thinking citizens to boycott the event, the NAR has decided to call the whole thing…
You probably don’t know, and almost certainly don’t care, that the U.S. Department of Housing and Urban Development (HUD, which unfortunately isn’t nearly as darkly charismatic as the Hud character played by Paul Newman in the 1963 movie of the same name) has postponed its ban on dual agency in FHA short sales.