Housing prices have risen

alfredos | Feb 5, 2013 01:43 PM ET Bubble again? No... Most of the real estate market still stinks. The hot real estate market title is a marketing gimmick. Real estate pricing will never recover but that`s fine because the prices were bloated and not real....

LoganMohtashami | Feb 5, 2013 02:03 PM ET Ladies and Gentlemen ..... Math DTI capacity and Liquid assets. These are the truth of the housing market. 1. Home prices are going up because inventory has collapsed. - Not enough traditional sellers ( Underwater Homes) - Foreclosure process to long ( 5.3 Million homes in delinquency and foreclosure process) - We had the worst housing start period in going back to the start in 1959 2. Mortgage purchase applications have been dead since middle of 2010... why because Americans can`t buy because their DTI is too high and liquid assets are soft 3. When home prices rise due to low inventory and we don`t have the income growth to support it ... Housing will get to a DTI problem faster When debt grows faster than income it`s a bad economic model because you have limits. Housing has been pushed

LoganMohtashami | Feb 5, 2013 02:06 PM ET by 30% cash buyers for 2 years now. So, when mortgage rates normalize ( 6%) you tell me where are the buyers going to come from in the next 15 years Logan Mohtashami

mshiaras | Feb 5, 2013 02:18 PM ET @Mr.Clumpus Thanks for a good chuckle at the expense of the bathrobe crowd. Incidentally, I saw a listing today in Phoenix at $120 per square foot next to a very nice unit that sold for $55 per foot in 2010. A 100%+ price increase in approximately 3 years certainly spells "bubble" in some markets.

Mr.Clumpus | Feb 5, 2013 02:24 PM ET mshiaras it`s going to be really had to see a bubble, and since so many are looking for one probably won`t be one. hard to see because when you go through a depression prices are probably as depressed as they were elevated in the bubble. but here on CNBC blog, down is the only righteous direction!

Mr.Clumpus | Feb 5, 2013 02:27 PM ET LoganMohtashami | Feb 5, 2013 02:06 PM ET by 30% cash buyers for 2 years now. So, when mortgage rates normalize ( 6%) you tell me where are the buyers going to come from in the next 15 years Logan Mohtashami you write as if interest rate "normalization" is disconnected from the rest of what is going on -- if interest "normalize" that means there is sufficient mortgage demand at 6%.

LoganMohtashami | Feb 5, 2013 02:33 PM ET @Mr.Clumpus It`s called the FED and QE. The whole system has been juiced and the FED has been more than 70% of the market place. Fed will stop QE in 2014 because that balance sheet will be north of 4 trillion dollars and they need to start unwinding that position. That 3 trillion they have spent already, it wasn`t for their health it was to push rates lower. Which actually created the investment vehicle of buying homes with cash as making into a reit because the yield is so much better than cash, bond, muni`s, CD etc etc At some point you pay the piper and now for the most part unwinding the FED balance sheet is foreign but it`s on the Fed`s mind. Logan Mohtashami

swfljim | Feb 5, 2013 02:53 PM ET Speaking as a Realtor in Southwest Florida (Bonita Springs-Naples area), prices here were up 17% on average last year and the available inventory is down almost 10% year over year. In the low price category, below $150,000, inventory is down to almost nothing. That said, many Florida markets benefit from sources that are not found in many areas of the country. We have a large number of foreign buyers (Canadians, Europeans, South Americans). We`re not as interest rate sensitive because many buyers pay cash and 10-thousand Americans turn 65 every day and many want to retire in Florida. I myself have been impressed with how quickly prices have risen, but this area was one of the hardest hit in the recession and we`re still far from the 2006 market peak median price (on average, about 50% bel






Start a Conversation - Add Comments

Your Comment: ( Please enter all fields and security code. )

Name:
Email:
Website:
Topic:
Comments:
 
Word Verification:
 

Latest Comments

The economy is booming... - sidfeinberg | Feb 5, 2013 03:27 PM ET swfljim | Feb 5, 2013 02:53 PM ET Speaking as a Realtor in Southwest Florida (Bonita Springs-Naples area), prices here were up 17% on average last year and the a... - by Lisa721

Rising Mortgage Rates Spook Housing - John9876 | Dec 19, 2012 12:03 PM ET The only thing supporting the housing market is Fed printing.

knetaz | Dec 19, 2012 12:07 PM ET "The only thing supporting the housing market is Fe... - by MikeZ76

How Big Is Wall Street`s Housing Bet? Pretty Big - NewDay12 | Jan 9, 2013 04:42 PM ET I like how after almost 5 years they are still calling this a recovery. Do they think people are that stupid. We are simply not in a technical reccession due to gov... - by Homenow

New Foreclosures Near Six-Year Low in December: RealtyTrac - Mr.Clumpus | Jan 17, 2013 06:01 AM ET Diana Olick is not going to like this bit of news one bit.

thereugoagain | Jan 18, 2013 10:29 AM ET The Obama administration has turned this coun... - by Cage277

Best US Housing Markets for Buyers and Sellers - LoganMohtashami | Dec 12, 2012 01:25 PM ET Sellers market in low inventory areas with investor demand for rentals. Sounds like such recovery gaining steam to me, cough cough Logan Mohtashami
... - by redfin8



Housing prices have risen

Real Estate Agent Directory

Are you looking for a real estate agent in your area? At housing news blog, you can search for your local realtor and real estate service by using our agent search features.

Real Estate Agent Directory

Get listed!

Are you a real estate agent? Get listed for free with us! Complete a real estate agent profile form and get listed in a few days. Click on the link below to get started!

Free agent profile!