Articles Filed Under: Real Estate Economics

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Dueling Academics

A new study by researchers at Columbia University and the University of Pennsylvania’s Wharton School suggests that housing prices in San Francisco are NOT overvalued. The study, titled “Assessing High Housing Prices: Bubbles, Fundamentals and Misperceptions”, points to “basic economic factors, including low interest rates, strong income growth and... Read More »

Buy A BMW 325i For Only $80k!

The Mortgage Bankers Association reported that 44.8% of all mortgage applications last week were for refinancing activities (versus new home purchases). Implications? Considering mortgage rates have been at historic lows for the past couple of years, it suggests that homeowners, “aren’t cutting their interest rates at all; rather, they’re... Read More »

Sticks And Stones…

Nothing like being labeled a housing “Danger Zone” (as if earthquakes weren’t enough). CNN/Money confirms that the majority of buyers in San Francisco (and 49% of buyers in Oakland) are resorting to “non-traditional” loans. Not new news to our readers (other than the moniker), but the quote from the... Read More »

DataQuick Reports Record Bay Area Prices

According to DataQuick, the median price for a Bay Area single-family home hit $651,000 last month (versus $643,000 in July, and up ~19% from last August). At the same time, however, the number of sales fell 4.1% from 2004 and “…insiders say the number of homes for sale has... Read More »

We’re Down With Lao

Lao Tzu, a sixth century B.C. philosopher, is quoted as having said, “Those who have knowledge, don’t predict. Those who predict, don’t have knowledge.” Or said much less eloquently, and applied to the real estate market: The problem is that no one can predict the precise peaks and valleys... Read More »

Tenants In Common (TIC) Thursday

Rumblings of TIC lottery reform and continued coverage of individual loans for TIC units are headlining stories today. To be honest, TICs scare the hell out of us these days. In an up market everyone’s happy (okay, so not everyone), but if the market should change,... Read More »

San Francisco Bay Area Sales And Prices Down

According to the California Association of Realtors, the median sales price for existing homes in the San Francisco Bay Area dropped 1.3% from June to July. Perhaps more importantly, sales volume was down 12.1% from June to July of this year, and down 16.3% compared to July 2004 (i.e.... Read More »

Now That’s A Chart!

Now That’s A Chart!

(Chart from NYT article: Be Warned: Mr. Bubble’s Worried Again) Robert J. Shiller, the Yale economist who published “Irrational Exuberance” in the year 2000, is at it again. And with a vengeance. Shiller argues that, “the housing craze is another bubble destined to end badly, just as every other... Read More »

Condo Investing Myths

Ready to cash in on the condo craze? Not so fast. Three condo investing “myths” as dispelled by CNN/Money: Myth 1: Get in early and you’ll be guaranteed a profit. Remember the lust for Internet IPOs? Ordinary investors bid up the stocks of hot little companies that hadn’t even... Read More »

Reading Between The C.A.R. Lines

According to the California Association of Realtors, the median sales price of a San Francisco Bay Area home increased 1.8% from May to June. At the same time, C.A.R. reports that the affordability index (i.e. percentage of households that can afford a median priced home) in San Francisco County... Read More »