A report from the Houston Chronicle in Texas. "While most of the nation saw home foreclosures decrease, Texas saw a spike in bank-owned properties. The lingering effects of Hurricane Harvey are partly to blame, ATTOM Data Solutions explained. 'Some of that distress was driven by natural disasters, most notably in Houston, where foreclosure starts increased 61 percent,' Todd Teta, chief product officer said."

"'Natural disasters do not explain the increase in markets such as... Austin —  which posted double-digit percentage increases in foreclosure starts in 2018,' Teta said."

"At least one market saw a rapid rise in year-over-year completed foreclosures: Beaumont was up 63 percent in this sector, compared to Houston, which saw a 17 percent increase. It's worth noting that the Beaumont area was also devastated by Harvey, which could be the main reason for that increase."

"Texas wasn't the only state with an increase in foreclosures. Roughly 17 other states saw an uptick. 'Plummeting foreclosure completions combined with consistently falling foreclosure timelines in 2018 provide evidence that most of the distress from the last housing crisis has now been cleaned up,' Teta explained. 'But there was also some evidence of distress gradually returning to the housing market in 2018, with foreclosure starts increasing from the previous year in more than one-third of all state and local housing markets.'"

From Market Watch. "The size of the average fixed-rate mortgage last week nationally was $280,900. The size of the average adjustable-rate mortgage was $688,400 – two and a half times as big."

"That data point, courtesy of the Mortgage Bankers Association, is a reminder – perhaps an uncomfortable one – that the mortgage industry must still offer products that make it artificially affordable to get people in the door, with the intention of refinancing later."

"That’s 'uncomfortable' because in many ways, it’s reminiscent of the housing bubble a decade ago. Karan Kaul, an Urban Institute researcher, called the recent explosion in the size of ARMs 'ironic' for their similarities to the bubble era, but said that things are very different now."

"Perhaps most important, Kaul thinks, is the contrast between the fundamentals of the two markets. A decade ago, speculation and greed drove up prices, whereas now, in a supply-starved market, 'demand' might be just as easily characterized as 'need' for housing, of any kind."

"It’s worth noting that ARMs account for 18% of all mortgages in California, a confirmation that in the priciest corners of a pricey market, people must be as strategic as possible."

From 27 East in New York. "Developers on the South Fork have been busy building in recent years. As a result, the number of homes on the high end swelled. Inventory in the luxury market—the iconic Hamptons home—is the largest it’s been in the past decade: about 489 properties, compared to previous quarters in the mid-300s. Overall listing inventory is the largest it has ever been: 2,197."

"According to real estate agents, sales are down, and many of these luxurious estates sit empty, with 'For Sale' signs out front."

"Even though the Hamptons is a tourist destination for the Wall Street rich and Hollywood famous, the building industry is what pays the bills and runs the show. Now, market watchers are concerned that the pinch that developers are feeling will become everyone else’s problem, too."

"Jesse Cole, a Manhattan real estate investor who commissions builds in the Hamptons, said the 'inventory glut' is a sort of 'reset' to the market. 'People can pick and choose instead of going through the pain of building,' he said."

"'To me, permit numbers suggest what is going to happen in a year or two in terms of actually coming to market, said Jonathan Miller, a real estate appraiser and consultant. 'Looking at these numbers, I think it’s only going to get worse.'"