Articles by Lynn Effinger

Here's proof the housing recovery is no longer recovering

Cautious optimism is still too much
It seems the share of consumers who believe that “now is a good time to buy,” as spun by NAR, CAR, the MBA and other sources that surely have skin in the game to report strong housing performance (real or imagined), dropped 7 percentage points to 45%. It's time to reset the recovery wristwatch.
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Head's up! There's a housing "bubble" forming in markets beyond San Francisco

Denver, Dallas, Seattle to name a few
Admittedly, the recent article published in HousingWire titled, “San Francisco exhibiting potential signs of a housing bubble,” focuses on one specific anomalous Left Coast housing market. But, this is clearly, in my view, a precursor to more markets, particularly in California, exhibiting the same signs.
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Dealing with one housing bubble at a time

HELOCs and other factors constrain housing “recovery”
RealtyTrac predicts that as the average HELOC borrower's ten-year interest-only period ends, that person's or family’s monthly bill will perhaps more than double from $133 to $279. This could pose a serious problem. Let's start with that, first.
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Investors still bullish on single-family rental market

Highlights from IMN Single-Family Rental Investment Forum
While some recent downward pressure on yields experienced by the much larger institutional investors has somewhat tempered the enthusiasm surrounding single-family rentals, investors are still bullish on the performance of the new asset class.
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Shaky housing market about to get even shakier

When will we all stop kidding ourselves?
Over the past several years, despite Wall Street and the current administration’s efforts to artificially prop up the housing market with historically low interest rates and foreclosure-alternative programs such as moratoria, HAMP, HAFA and others, we discovered that the so-called housing recovery was simply rhetoric.
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Risky housing policies and the slowly inflating bubble

Under-employed and shrinking work force big factors
One media report quoted DeMarco as saying that in the past year we have seen a renewed policy focus on questions regarding access to credit, which, in his view can risk repeating the approach that contributed to the financial crisis. There are many other warning signs, as well.
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More troubling signs point to potential increase in defaults

And yet we introduce a 100% LTV mortgage
These new reports indicate that we are most likely entering a period of higher risk over the next four years as it relates to resetting these “bubble-era” HELOCs. This is especially troubling given noticeably slowing home price appreciation in many markets across America.
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