Posted on 12/05/2013 3:26:29 PM PST by whitedog57
Trulia released its price and rent monitor today.
In November, asking home prices rose 12.1 percent year-over-year (YoY), increasing in 98 of the 100 largest U.S. metro areas. Regaining a bit of steam since the slowdown began in July, asking prices rose 1.0 percent month-over-month (MoM) and 3.0 percent quarter-over-quarter (QoQ). In fact, the quarterly increase is the fastest in five months, though still lower than in the spring.
The west coast along with Atlanta and … Detroit(?) are still growing in price at a rapid rate, but that rate is slowing down.
askrpicertrulia
Rents on the west coast are sizzling, but are slower than house price growth in several of the top 25 metro areas. Miami is also sizzling.
truliarent
These rapidly rising rents and home prices are occurring as real median household income in California (blue) and Michigan (red) have declined.
rmhicamich
And if we add Nevada (green), you can see the stark decline in real median household income in these bubble states.
rmhineve
True, the real median household income numbers are only through 2012. But unless the numbers are far better in 2013, we have a bubble. And an affordability crisis … again.
It's the smaller homes/properties which be more desirable and they will be the properties that tick up in value at time goes on.
Every time I’m in earshot and hear a real estate person talk up ‘home prices coming back’ I always shoot back loudly, “So you’re suggesting the bubble is back?”.
I have the utmost contempt for anyone in the housing market right now, from real estate to finance to title & escrow. That includes builders & inspectors (you should see how many defects my home developed in 5 years).
Absolutely nothing has changed and I, among others, will be moving soon as a result and licking my wounds for years.
What a racket. I’d have been miles ahead if I’d have just settled on the manufactured home that was offered me years ago. Live & learn/fool me once.
Headline sense make does not
The foreign buyers have bid prices up this last year or two. Many all cash transactions. Local people are mostly. priced out of the market except for a small handful of corporate owners etc. pretty much anyone who needs to borrow money to purchase can’t compete with the Chinese ( and etc ) all cash bids. Sellers like all cash better than bids that are conditioned on bank financing.
Because those offers can fail or fall apart. One thing this market certainly does not represent is any real improvement in the economic well being of “normal American working people. “. Quite the contrary. They are getting screwed is all
And you know what? They are building the McMansions, again, all around me and they are selling at prices close to the height of the bubble.
I fully am expecting the same thing to happen. Especially, if Obamacare is not stopped. The suburb where I live has a high median income but not enough to support a few grand mortgage payment, a thousand dollar energy bill, ever increasing food and fuel costs and now a second mortgage in the form of health insurance costs. The dam is going to break for sure.
Here in Seattle one of the food banks said they helped about 500,000 people (a month, year, ???) before the crash in 2008. He said it went up to 750,000 shortly after, and has stayed at that level. Said something like “It may be better for some, but for a lot of people they don’t see it.”
Wave of the future.
In the past 10 years or so manufactured homes have been built very tight, built extremely well thought out, great insulation, seismic foundations and many were constructed with 2x6's instead of 2x4's.
Our next home, when that happens, will be this type.
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