patrick.net

If you would, could you share your opinion as to why California has this insane Keep Your House program, where they are literally giving up to $100,000 to prevent foreclosures? How can anyone dismiss this as it is an obvious attempt to shore up available supply and prevent price deterioration.

Malcolm says

$100,000 to prevent foreclosures?

Difference between Judicial states and non Judicial states in terms of length for foreclosure timeline

New York, Florida and New Jersey were running between 800 - 1,000 days before foreclosing on a home

CA had the Homeowners Bill of Right Act passed to try to slow the process down and attempt to save as many homeowners as possible

But in general distress sales are very low now as distress supply has dwindled down




CA specific, In November I will part of a economic housing conference in the O.C. to talk about CA housing and National Housing .. The Head economist from the CAR will be part of the panel and she will provide a lot CA data, where I will be more national data and the data will be firm then As seasonality kicks in August

http://keepyourhomecalifornia.org/programs/principal-reduction

Low interest rates created years worth of low rate locks, and if you move then just rent it because the payment is cheap. Meanwhile, cashing out is only just getting to the point where it could start to go up in frequency again. And, folks can afford higher payments these days, we can tell that from the CC debt bubble, if you want to call it that. Now, with a bit higher rates we could see price ascension slow down some.

Sure, areas can seem bubbly, but affordability and competition, bidding wars, would seem to weigh strongly in bay area.

Here in the midwest, ehhh, RE is boring, boring, and boring, we build allot of sprawl, over priced city lots, luxury apartments, and more, and more condo's. I'm seeing smaller homes with giant yards, are being shunned again some which I think is awesome, I need one.

everything says

Sure, areas can seem bubbly, but affordability and competition, bidding wars, would seem to weigh strongly in bay area.

I am only looking at California as I don't have a pulse on the whole country. Yes, I think wages are a little more in line than before, and we don't have the insane teaser rates, that then became the regular rate to prop housing up.

Question, if you click on the link I posted, how can someone need principal reduction if prices are going up?

And yes, I think interest rates moving just a little are going to hurt badly. I also think interest rates ergo house values have their back against the floor. There is no more lowering of interest rates to prop up the market, that is why the state has resorted to loans that turn into gifts as a hope of preserving current levels.