Study Debunks Boomer Urban Migration Myth

Study Debunks Boomer Urban Migration Myth . One of the things that many realtors were reporting that Baby Boomers were returning to cities from the suburbs. The information was largely based anecdotes such as the number of older adults in enrolled at City Colleges. The recent study indicates this is myth.

Corrections - Secondary markets are first.

It's becoming pretty apparent that housing market correction doesn't bode well for the secondary California markets. These are markets that have been bouyed up by the bubble but whose fundamentals just do not support the price appreciation. They are just outside the major markets and include Bakersfield and parts of the Central valley. Most analysts are predicting major prices declines in these markets. TO my mind this makes complete sense as real estate is always highly regional. These markets were quickly driven up as they were the only affordable housing in the area - the problem of course is that the price of gas means that living in Bakersfield and commuting to Los Angeles is an incredibly expensive proposition. Add in a negative amortization loan which is going up, combined with negative equity and you are setting the market for some sharp price declines in the medium term and stagnated appreciation (probably below inflation) for the next 10 years.

Mortgage Broker Shakedown continues

The California mortgage broker market continues it's shakedown. I have gotten four email reports of brokers closing their doors. I can only guess where this all gonna shake out. Companies to watch Aegis & New Century apparently

NAR 2006 Prediction WRONG!

Back in December of 2005 the National Association of Realtors (NAR) made a woefully wrong prediction. Thanks to Business Week for finding this gem:

PREDICTION: The national median home price will rise about 6.1% in 2006. Over a full year, it "has never declined since good record-keeping began in 1968." — National Association of Realtors, Dec. 12, 2005

THE REALITY: Through October, the median price of residential properties was down 3.5% from a year earlier.

The NAR was way off on this prediction. The median price decline is even worse if you take into account all the extra incentives that have been thrown on new home buyers. Don't trust the National Association of Realtors. Remember, David 'the shill' Lereah works there!