This Time Really Is Different
A report from Realtor.com. "The postcrash price growth might actually be higher than most thought. Home prices shot up a cumulative 50% over the past decade, from June 2009 through May 2019, according to CoreLogic. Wages also rose over the past decade, but not nearly that much."
"'We have years of home price growth leaving borrowers with record levels of home equity,' says Molly Boesel, principal economist at CoreLogic. 'So if they're in a situation where they can't pay their mortgage, they would just sell. So they won't wind up in default.'"
"In the wake of the crisis, lending standards have been tightened. Only the strongest candidates in good financial shape can get a loan. And there isn't nearly enough new construction to satiate demand. 'Everyone likes to say this time is different. But this time really is different,' says Chief Economist Danielle Hale of realtor.com®."
From the Home Buying Institute. "Three or four years ago, home prices were rising in most cities across the U.S. But things have changed since then. For a number of reasons, prices in many housing markets across the country are starting to level off. And in some areas, they are actually declining."
"Look at Denver; Seattle; San Jose; and Portland, Oregon for example. These were some of the hottest housing markets in the country just a few years ago. Today, buying a home in one of these cities might actually be a bad idea. That’s because home prices have actually declined in these markets. And some forecasts suggest they’ll continue to drop through the end of 2019 and into 2020."
"A few years ago, the Seattle real estate market was a hot spot for investors. Overseas investors, in particular, were snatching up properties left and right. But that was then, and this is now. In 2019, you don’t see very many real estate investors in the Seattle area. Savvy investors anticipated the major home-price gains mentioned above, and they also saw a downturn coming."
"For a while there, it looked like home prices in the Portland housing market would just flatten out for a while — and maybe turn north again. But now it’s official. They’ve actually dropped."
"Inventory growth does a couple of things. It takes some of the urgency out of the home-buying process, and gives buyers a chance to 'catch their breath.' It eases competition. It tends to result in slower home sales, price cuts, and other signs of market shift. This is what we are seeing in a lot of the formerly red-hot housing markets, like Seattle, San Jose, Denver and Portland."
From WSLS in Virginia. "The sudden closure of a Roanoke-based homebuilding company last week still has clients and customers scrambling for answers. David James Homes shut down last week after owner Merle Heckman sent an email to employees citing 'bad business decisions.'"
"Nick Akers says he lost about $80,000 after David James Homes stopped construction on his new Huddleston home. He says subcontractors have come after him for money because David James Homes had not paid them. 'They're wanting lots of money, and they're talking about putting liens against the house, and it's just a bad situation,' Akers said."
From WINK News in Florida. "Neighbors in Charlotte County believe some big lizards are taking over a rundown home near them. 'There’s a big hole in there,' neighbor Henry Overhoff said. 'And you can just see them on a nice day that they’re poking their heads out, walking around to the top of the roof.'"
"The home in question has been vacant since 2010 and is now in foreclosure. Neighbors worry decomposing iguanas are in the house, and they want to see something done. Unfortunately for neighbors, it could be months or years before the property’s foreclosure is complete."
From NBC Los Angeles in California. "Oakley residents are in an uproar after several late-night parties with hundreds of teens have stormed a normally quiet neighborhood. Police appear unable to keep it from happening."
"The home is in foreclosure and the owner said she is in the process of moving out. It could be weeks or months before she is called into court to answer code enforcement violations. 'It's just unbelievable, it's unbelievable,' neighbor Howard Blumenfeld said. 'It makes me feel unsafe to live in this beautiful neighborhood.'"
The Orange County Register in California. "183,100 foreigners bought homes nationwide in the 12 months ended in March, down 31% from 266,800 in the previous year. My trusty spreadsheet says 22,000 foreigners bought homes in California in the 12 months ended in March. That’s down 41% from 37,000 in the previous 12 months."
"Non-U.S. buyers acquired 15,000 fewer California homes in the past year. That translate to 30% of the 50,000 statewide drop for all home purchase. That’s impactful, especially in housing niches foreign-buyers often prefer: newer, pricier homes in many of the state’s ethnically diverse communities."
"Hey, California homebuying overall went from 'must do' to 'meh' in the past year. House hunters from other nations just pulled back a tad more aggressively. California was the top destination for buyers from China, Hong Kong and Taiwan — claiming 34% of all Chinese purchases nationwide. But that’s a big slice of a shrinking pie: Deals nationwide from these Asian nations last fell fell 51% to 19,900."
"That drop put Canada in a tie with the Chinese trio for the top number of U.S. buyers. And California got only 3% of those deals from our neighbors to the north — ranking the state fifth nationwide. All Canadian deals in the U.S. fell 27% to 19,900."
"What these stats do tell us is which key house hunter is missing in today’s slow-selling market. What logic says is that nobody should count on foreigners returning any year soon."