Five Cities Could Potentially Be in Housing Bubble; Riverside Included

Today’s News Synopsis:

 

Due to overvalued stock and drastically increasing home prices in certain cities, there is a possibility these cities may be in a housing bubble: Reno, Nevada, Bend, Oregon, Boise, Idaho, Austin Texas, and Riverside, California.  Existing-home sales increased by 0.4% to 5.47 million, their highest in nine years.  Bank of America is now allowing people to only give a 3% down payment for a mortgage, even if they do not have mortgage insurance.

 

In The News:

 

Fortune – “These 5 Cities Might Be the Next Housing Bubble” (2-23-16)

“The US housing market has been booming. Last year saw the most new home construction since 2007, when the real estate bubble burst.  But in 2016, there is some uneasiness. New home construction took a small, 3.8% slip in January, due to the stock market uncertainty and wintry weather.”

Bloomberg – “Sales of Existing U.S. Homes Rise to Second-Highest Since 2007” (2-23-16)

“Sales of previously owned U.S. homes unexpectedly rose in January to the second-highest pace since early 2007, indicating the industry will keep prospering.”

Mortgage Professional America – “Morning Briefing: BoA takes aim at FHA with new 3-per-cent down mortgage” (2-23-16)

“Bank of America has launched a new mortgage product which allows homebuyers to make a downpayment of just 3 per cent with no requirement for mortgage insurance.”

Housing Wire – “Case-Shiller: Housing in dire need of inventory as prices rise” (2-23-16)

“The motivation to build more homes grows as prices continue to steadily increase heading in to the spring-homebuying season.”

Mortgage Professional America – “Google backs out of the mortgage business” (2-23-16)

“Google had barely dipped a toe in the mortgage business, but it appears the tech giant is getting out.  Last November, Google launched Google Compare for mortgages, an online tool that allowed home buyers to find and compare home loans.”

Bloomberg – “Morgan Stanley Says U.S. Commercial Real Estate Price Growth Will Be Flat” (2-23-16)

“Morgan Stanley analysts last week predicted U.S. commercial real estate prices would grow by a big fat zero percent in 2016, replacing a previous forecast of 5 percent growth over the course of the year.”

Mortgage Professional America – “The originator business segment making a comeback” (2-23-16)

“They may have been a dying breed in post-recession America but HELOCs are seeing a resurgence, according to one financial analytics firm.”

Hard Money Loan Closed

Hemet, California hard money loan closed. Real estate investor received loan for $129,000 on this single family property appraised for $215,000.

Hemet Hard Money Loan closed by the Norris Group

 

California Real Estate Investor Events

Bruce Norris will be presenting his newest talk Stay Put, Cash Out, Or Change Seats? with NORCALREIA on Wednesday, March 9.

Bruce Norris will be presenting his newest talk Stay Put, Cash Out, Or Change Seats? with OCREIA on Thursday, March 10.

Bruce Norris will be presenting Cashing in on a Boom: Investing in Quadrant 4 with Bruce Norris in Sacramento on Saturday, March 19.

Image copyright source: www.flickr.com/photos/77682540@N00

 

Looking Back:

Existing-home sales decreased 4.9% with the increase in prices and decrease of supply.  This news in addition to the news of decreases in both housing starts and permits led to housing stocks being driven way down.  However, at the same time the prices of luxury homes increased 3% in the fourth quarter of 2014.

 

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6 pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.










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