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Mark Hanson: Organic CA sales down YOY


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2014 Jul 28, 6:39am   5,150 views  1 comment

by corntrollio   ➕follow (0)   💰tip   ignore  

http://mhanson.com/archives/1612

This is somewhat the sequel to his 3/11 post:

http://mhanson.com/archives/1594

When it comes to defaults, foreclosures and short sales and how they really fit into the macro housing and economic mosaic less is bad. Foreclosures and short sales “were” a significant housing and macro economic tailwind that drove transactions, prices, home improvement retail, labor, materials, and durable goods sales, which now — down 75% since 2012 — have turned into a stiff headwind.
...
The benefit of foreclosures / short sales is clear here. In fact, the only reason “CA house prices” were up 8.6% YoY in June was because distressed prices were up 11.6%.

#housing

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1   corntrollio   2014 Jul 28, 6:43am  

This fits with my belief that foreclosures and short sales have good for the market because less money chasing used houses means more money is spent on other things that can benefit the economy.

In addition, it fits with what I've observed in certain portions of the local market where certain parts of the Bay Area aren't getting the crazy overbids any more (as I mentioned in a previous thread). I'm sure someone like cloud will trot out something overpriced in the South Bay, but I'm not seeing the same thing in certain parts of the East Bay outside of Oakland (where investor activity is still fairly high).

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