A report from Living Snoqualmie in Washington. "The Chief Economist for Windermere Real Estate, Matthew Gardner, made a stop in the Snoqualmie Valley. Gardner said the Puget Sound real estate market is ‘well and above’ many other U.S. markets, but the currently it is a ‘more rationale housing market.’ Gone are the years of 15-20% price increases. So are we in another bubble? Gardner says no, noting the credit worthiness of buyers. Gardner said, 'Overpriced homes doesn’t mean we’re in a bubble. It just means overpriced.'"

The Daily Bulletin in California. "What’s up with mortgage rates? Jeff Lazerson of Mortgage Grader in Laguna Niguel gives us his take. Should predatory lending rules apply when consumers borrower against their homes to invest in their business or buy a rental property? Should lenders be able to skirt caps on interest rates, points and fees when a mortgage is for 'a business purpose?'"

"Those are some of the issues hashed out before a Los Angeles administrative law judge earlier this year after the California Department of Real Estate, or DRE, fined an Irvine-based private loan broker and suspended his real estate license 90 days unless he met certain terms and conditions. Last week, the issue came to a head when the lender and DRE reached an out-of-court settlement overturning the fine and suspension."

"The case touches on the rare issue of 'business purpose' loans, when borrowers use their own homes as collateral 'to finance their dreams,' as one of the law firms in the case put it. But this obscure case could have outsized implications by allowing 'fog the mirror' mortgages if the loan is for 'a business purpose.'"

"So, now there is a bright line lifting consumer protections against unlimited points, high rates, balloon payments and prepayment penalties for every financially desperate borrower who can’t get a mortgage through institutional channels. Such loans now are possible so long as he or she provides a business purpose. Yes, it’s a free country and you should be able to take any risks you want, including tapping your equity to help your business or buy a rental."

"But there is so much money to be made by every lender licensed in California (not just the private money lenders). Count California as ground zero for the next mortgage meltdown."

From The Coloradoan. "According to the latest market update from the Colorado Association of Realtors, median home sales prices in Fort Collins dropped in August to $420,000 from a high of $438,500 in June. Sales in the coveted $400,000 and under market are down 20 percent year over year and on the other end, million-dollar homes are taking longer to sell, Fort Collins Realtor Chris Hardy of Elevations Real Estate said."

"This year, a combination of things happened: interest rates clicked up in the spring then dropped unexpectedly and 'we saw an uptick in inventory but buyers were still hanging back,' Hardy said. 'There's still demand,' he said. "Sellers are still seeing competing offers on highly desirable property under $400,000, but instead of seeing 15 offers like they did in April 2018, they're now seeing three to four offers."

"The 'stall,' as Hardy calls it, is giving buyers in the middle price points a little breathing room as they look at property. Prospective buyers 'can go out on a Saturday morning and look at seven properties in the $350,000 range that aren't already under contract,' Hardy said. The slight market slowdown is forcing sellers to adjust their pricing expectations, Hardy said, as well as get their homes in top shape before putting them on the market."

"Don Dunn of Dunn Real Estate Management manages 170 rental properties throughout the city. He expects to see rents level off in the coming year and is advising his clients not to expect large increases for the next year as the city absorbs the number of new units. 'Currently, I think we are feeling some effects of the number of apartments that have been built in Fort Collins,' Dunn said."

From Inside Nova in Virginia. "A relatively flat month in August is not deterring optimism for the remainder of the year in the Northern Virginia real-estate industry. Prospective buyers are navigating the current environment carefully, trying to avoid pitfalls, NVAR officials said. And having learned the lessons of the real-estate bubble a decade ago, they are focused on not overspending."

"High prices are forcing prospective buyers to get creative, particularly if they cannot tap previous equity to fund purchases. 'We are seeing more first-time buyers investing with a friend or family member in order to be able to afford the purchase,' said Christine Richardson, president of the Northern Virginia Association of Realtors. 'I am currently working with several first-time buyers in their 30s who are looking for something with at least two bedrooms and two baths, so they can rent out a room to help cover their new mortgage payment.'"

"Alexandria saw a year-over-year inventory decline 64 percent, while Arlington saw a dip of 52 percent, as property owners are holding onto their homes in expectation – real or imagined – that prices will continue to rise and investors are snapping up homes while taking a hold-and-wait approach."

The Real Deal on New York. "An estate on Gin Lane has only been on the market for about a month, but it’s already taken a 'hefty' price cut, Behind the Hedges reported. The property first listed at $59 million, but is now seeking $49 million, according to the outlet."