A new study by the Center for Housing Policy, entitled Housing Landscape 2012, found that the share of working households paying more than half their income for housing rose significantly between 2008 and 2010 for both renters and owners. This annual report explored the last Census data on housing costs and income, including housing cost burden data from the 50 largest US metropolitan areas, all 50 states, and the District of Columbia. The report found that nearly one in four working households in the US spends more than half of total income on housing.
Category Archives: Investing in Real Estate
Foreclosure Activity Declines Hurting Investors
Here is the latest report from foreclosureradar.com
Foreclosure Starts declined across our coverage area wiping out the small gains in new foreclosure filings last month. In California, Notice of Default filings are down 69.8 percent from the peak in March 2009, and 15.8 percent from April 2011. Notice of Trustee Sale Filings, the start of Arizona’s foreclosure process, are down 59.4 percent from the peak in March 2009, and down 8.0 percent year-over-year.
Ventura’s Supply and Demand
Real Estate Parcels are Unique and Finite:
You cannot fill a real estate supply shortage by manufacturing more identical units. Each piece is different and there is a finite supply. It’s not a manufactured commodity. Though you might be able to create more condos in a give space, the space itself is unique and cannot grow to accomodate a short supply.Real Estate Cannot be Moved to Fill Shortages:
If there is a shortage of land for homes in a given area, you cannot move in more land to alleviate the shortage. Real estate is where it sits. For this reason, it will always be a local commodity influenced by local conditions.Over-supply Means Lower Prices:
Because of the first two items above, you can usually expect there to be a fall in prices when there is an over-supply of homes or land in a given area. You cannot move the overage to another area to keep prices stable.Under-supply Means Higher Prices:
If there isn’t enough land or homes in a given area, then prices will almost always rise. Even if there is the ability to construct more homes, the time delay cannot fill the demand and prices will rise.Always Remember that Real Estate is a Local Business:
We all read about trends in interest rates, national home price trends, new housing starts and many more economic indicators that influence the real estate markets. It will serve the real estate professional well to keep up with this information, but to always keep in mind that this is a local business. There can be many forces influencing your local market that will have little or no impact in other areas, and vice versa.Supply and demand in real estate isn’t as easy to balance as it is in manufactured commodities. Making more takes time, and there may not be room to make that happen in any given area. You can’t move it to where the buyers are.
CA Pending Home Sales Highest Level in Nearly 3 Years
California pending home sales posted higher for the third consecutive month in March, rising from both the previous month and year, C.A.R. reported Tuesday. Additionally, the share of distressed sales dropped for the second consecutive month, as equity sales typically increase with the start of the spring home buying season.