Dr. Housing Bubble Blog

The worst performing cities of Los Angeles County – Top 10 cities with annual price declines for 2011. The fundamental attribution error when applying a nationwide housing bottom to your bubble niche market.

drhousingbubble — Fri, 10 Feb 2012 19:32:52 +0000

People have a hard time understanding that the world is not made up by black and white answers and that goes equally for how the economy evolves and responds to bubbles bursting. Some don’t even want to acknowledge that we are now half a decade into this bubble popping like believing the Earth is flat. [...]

Doubling down on rentals – Las Vegas market dominated by investors but is the market saturated? 50 percent of all purchases last month came from cash buyers with the median price of $82,000. Over 1,000 postings on Craigslist showing free rent for rentals.

drhousingbubble — Tue, 07 Feb 2012 23:56:56 +0000

Managing properties is a hard business. The days of flipping properties and television promoting this bubble exploitation are gone here in California but do seem to have an audience in Canada’s ridiculous real estate bubble. Here in the states however most investors have shifted their focus to buying properties to rent out. Now this at [...]

The new American Dream of renting – 5 reasons why renting is a better economic choice than buying a home in 2012. The benefits of renting are rarely promoted unlike the large lobbying groups for home buying through the banking industry.

drhousingbubble — Mon, 06 Feb 2012 04:23:01 +0000

Washington and New York have no organized lobbying groups for renters. Yet for 2012 renting is likely the best bet for many of those that still have yet to purchase a home and are thinking about diving in. The machine wants you to be a homeowner even if it devours every last cent of your [...]

A new model of real estate – Economic recovery driven not by residential real estate sector. Are lower real estate values helping the economic recovery?

drhousingbubble — Fri, 03 Feb 2012 20:31:08 +0000

What I find fascinating about the recent positive job gains is that most of the growth is occurring outside of the real estate sector. This is an overall positive. Keep in mind that real estate values are still down by $7 trillion from their peak reached in 2006. So the trend of adding more jobs, [...]

Malibu housing correction – 2005 saw 50,000+ million dollar home sales in California. In 2010 it was roughly 20,000. Malibu REOs listed at 15 but shadow inventory above 100+ in a prime SoCal beachfront city.

drhousingbubble — Tue, 31 Jan 2012 23:13:08 +0000

The recent housing data seems to come as a monstrous shock to most reporters. What in the world is happening with lower home prices if mortgage rates are at all-time lows? Contrary to the fact that for the past decade mortgage rates were already at comically low levels thanks to an activist Federal Reserve, demand [...]