The lingering effects of the housing bust still distort market action eight years after the crash.
One thing most real estate market observers do agree on is that our current market conditions are not normal. But what is a “normal” market anyway?
A normal market would be characterized by a ste… – When will everything be back to normal in housing?
Inflated rents portend inflated house prices. If rents are at unsustainably high valuations, then so are house prices.
Historically, rent and income were bound in a tight relationship because renters generally pay the bills out of current income rather than savings. If income rises, renters use… – Do sky-high rents disguise a new housing bubble?
The federal reserve couldn’t have prevented the housing bubble and bust through interest-rate policy alone.
In response to the housing bubble and bust, Congress passed the Dodd-Frank financial reform. These new mortgage regulations will prevent future housing bubbles by effectively… – Federal reserve underestimates sensitivity of housing to mortgage rates
Many of today’s problems in housing result from policy changes and emergency measures instituted to minimize the damage from previous housing bubble.
House prices can only rise with wages on a sustainable basis. While policymakers can tamper with mortgage rates to influence affordability… – Eight intractable problems in housing today
American homebuilders never before built new homes in volume specifically to rent. Is this a passing opportunity or a new persistent business model?
Prior to 2010, no companies existed that bought, owned, and managed single-family detached homes. The millions of foreclosures that followed the… – Is single-family build-to-rent homes a viable business model?
In a cynical example of bad governance, lawmakers created circumstances that will result in a crisis providing them political cover for their actions.
Washington is so polarized that politicians need a crisis to get anything done. To that end, politicians created circumstances at the GSEs… – Fake crisis needed to prompt reforms at the GSEs
A late season influx of for-sale housing inventory caught observers by surprise. Since it’s cloud inventory, the weight will not push prices lower.
The Orange County housing market has a large number of cloud inventory listings, sellers who can’t reduce their price because they need to p… – Orange County for-sale housing inventory explodes