CFAH

Articles Filed Under: Real Estate Economics

(1,872 posts)

An ARM (And Quite Possibly A Leg)

As you already know from diligently reading SocketSite, adjustable-rate mortgages (ARMs) are all the rage in our fair city and account for the vast majority new mortgages. What you might not know, and few brokers or agents like to emphasize, is that most ARMs expose barrowers to significantly more... Read More »

Yes! Yes! No.

The title naturally caught our eye (Why You Can’t Afford a House in San Francisco), and we think the author’s analysis gets off to a strong start. But then he sputters. And falls flat. The entire premise of this article is that housing prices should be directly correlated with... Read More »

Trade School Versus Academia

Yes, once again it’s the academics squaring off against the Realtors®. Not too surprisingly, they offer two wildly different views. Play along and see if you can match the forecast to the group: 1. edian home prices across the state will rise 15 percent year-over-year in 2005, down from... Read More »

Freakonomics Freaks NAR

Freakonomics just moved to the top of our summertime reading list. Pointing to data that suggests that “full-service” “realtors get 3-4% more for their own houses and leave their own houses on the market 10% longer” than their clients’ properties, and suggesting that “discount” brokerages might be the way... Read More »

You Are Here (A)

You Are Here (A)

Eric Jansen of Trident Capital waxes poetic on his “Seven Steps” in the boom-bust cycle of housing (not to be confused with the deadly sins or highly effective habits). Although it’s a bit dire, it’s well written and worth a read regardless of your bubble philosophy. And we just... Read More »

30,067 Fewer Home Buyers

According to the California Association of Realtors, only 8% of San Francisco households can currently afford to buy a median-priced home in the city. That’s down from 12% in April of last year. · Housing Affordability Index falls three points to 17 percent in April Read More »

Greenspan Speaks

Although we don’t always listen to, or agree with, Chairman Alan Greenspan, one part of his recent testimony definitely caught our eye. The dramatic increase in the prevalence of interest-only loans, as well as the introduction of other relatively exotic forms of adjustable-rate mortgages, are developments of particular concern.... Read More »

Riotous Living Anyone?

According to a study by the California Building Industry Association, Bay Area homeowners have increased the equity in their homes by roughly $234 billion over the past five years. Which, if the basic assumptions of the study were neither biased or flawed, would be quite impressive. The study assumed... Read More »

Great Advice For Buyers

James Stewart at SmartMoney hits the nail on the head. If you’re a first-time buyer looking to purchase a primary residence and you can easily afford the down payment, ongoing mortgage, taxes, and upkeep – just do it. Don’t try to time the market, just do it. Current mortgage... Read More »

San Francisco’s Housing P/E

As sales prices have risen, and rents have dropped, San Francisco’s residential “rent ratio” has climbed to a nation-wide high of 34.1 (according to The New York Times). We’re higher than New York City (25.4) and San Diego (28.9), and up from a rent ratio of 12.5 in 2000.... Read More »