Thursday, March 31, 2011

Home Values and Prices Around The USA

According to PMI Group Monthly Analysis:  In previous house price boom and bust periods,
house prices moved above their fundamental values only to fall below them for a while. While this simple analysis can help to identify areaswhere house prices appear to be out of line with incomes, it can’t tell us when a correction will occur.

As a result, while some areas appear to have already fallen well beyond their fundamental values, they could still fall further. What the analysis does say, however, is that at some point, there should be a recovery in house prices in these markets that will bring them back into balance with incomes.

States where house prices are too low, although they had no bubble Indiana is a good illustration of a surprising pattern seen for areas where prices tracked incomes quite closely even during the housing bubble, but then still got hit by declining house prices as a result of the Great Recession. Other states
with similar patterns include Arkansas, Kentucky, Kansas, Iowa, Mississippi, Nebraska, Ohio, Oklahoma, South Dakota, Texas, and Wyoming. It is likely that house prices in these areas will recover along with job growth, which is already happening in manufacturing and agriculture.

Since disposable income is not available at the state level, we made a minor adjustment to the state-level per capital income data by adjusting it for how national disposable per capita income compares to national per capita income over time. 

There are many measures of affordability, some based on prices relative to monthly house costs, including taxes, insurance and mortgage payments, while other measures compare house prices to rents. Here, we compare house prices and adjusted per capita income1 in order to study how they evolve over time. Over time, house prices and income should grow at similar rates, otherwise housing would become either increasingly affordable or unaffordable. We used two different measures of house prices, the CoreLogic House Price Index (HPI) built on all transactions and the CoreLogic HPI excluding distressed sales, since they tell somewhat different stories. 

States where house prices have over-corrected from the boom and are very affordable Michigan is an example of a state that had a housing boom, with prices moving upward at a pace much faster than the capacity of homeowners to pay for them – but where prices appear to have significantly over-corrected.

The data for Michigan suggest house prices were overheated in the decade before 2007, but have since
overshot too far to the downside of income, both relative to a 1995 base year of 100. 1995 as the base year because it was a relatively stable period for both housing and the overall economy). An index value of 120, for example, would signify that income or the HPI is 20 percent higher than it was in the base year of 1995.

Since there is some concern that the house price indices which include distressed sales undervalue properties not sold as short sales or from REO, we also show the CoreLogic HPI that excludes distressed sales.

Comparing the different HPIs, the index that excludes distressed sales lessens the underpricing
seen in most areas, but it only explains a portion of the under-pricing relative to incomes. Other states that have a broadly similar pattern to Michigan include Alabama, Georgia, Idaho, Illinois,
Missouri, Montana, Nevada, New Mexico, and West Virginia.
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Wednesday, March 23, 2011

Quote of The Day

If you have an hour, will you not improve that hour, instead of idling it away?

 Lord Chesterfield

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Thursday, March 17, 2011

Real Estate, Mortgage, Airline, Financial and Other News

The dow jones closed with 11,774.59 points and Nasdaq close at 2636.05

Korean Air will start receiving the 787-900 from boeing starting 2016

The supply of popular hybrid and fuel efficient cars is fallin as demard for imports is increasing as well as the prices.

The us labor Labor Deparment reported that wholesale food prices jumped 3.9% in February over January, the highest monthly increase in 37 years.

Nordstrom Store is moving out of the Glendale Galleria to The Americana also in Glendale California.

Six more banks repay U.S. Bailouts. The Treasury Deparment said it had received proceeds of $ 475 million wen the banks repurchased prefered shares and other investments that the department got in exchange for its cash injection.

Apple shares fall afted been downgraded by JMP Securities, Apple shares dropped $ 15.42 or 4.5% to $ 330.01

Guess profit up but sales down. Revenue rose 18% to $ 756.9 million. Its current quarter profil forecast of 41 to 44 cents a share was below the 61 cents expected by analist.

Ex Freddie Mac chairman and chief executive has been notified by U.S. regulators that he may face civil claims for failing to fully disclose the company exposure to risky mortgages.

The Obama administration wednesday asked Congress to pass legislation to protect online consumers privacy.

U.S. businesses sold more industrial suplies,chemichals and farM products abroad in the final three months of last year, pushing the deficit in the broadest measure of foreign trade down for the first time since spring 2009.

Alberto Pacheco
Realtor Calbre Lic 01200694
818 481 9211
Keller Williams Porter Ranch
Real Estate Consultant  Real Estate News, Mortgages, Trends

Home Building Declines 22.5%

Home construction declines 22.5% in February 2011 comparing to January to a seasonally adjusted 479000 homes according to the Commerce Department. It was the lowest since April 2009 and the second lowest dating back more than a century.
Single family homes which make roughly 80 % of home construction, fell 11.8 % in February . search homes for Free

Andrew Carnegie Quote For Today

And while the law of competition may be sometimes hard for the individual, it is best for the


because it ensures the survival of the fittest in every department.

Andrew Carnegie

Saturday, March 12, 2011

Daylight Savings For The Spring of 2011

Daylight Savings Start on 03/13/2011 at

2:00 AM

Before you go to bed tonight make sure you adjust your watch and clocks One Hour Ahead

We Will Be Missing One Hour of Sleep.



Tuesday, March 08, 2011

Quote of The Day

It was a high counsel that I once heard given to a young person, "Always do what you are afraid to do."

 Ralph Waldo Emerson


Thursday, March 03, 2011

Wednesday, March 02, 2011

Investors Foreclosures, Bank Owned, Reo's, Repossessed Homes available in Arleta as of 03/02/2011

9235 Laurel Canyon Ave 3 Bedrooms, 2 Bath , 1222 sq ft Home and 6480 sq ft Lot

9333 Stanwin Ave  3 Bedrooms, 2 Bath, 1394 sq ft Home and 8460 sq ft Lot

9572 Lev Ave  3 Bedrooms, 2 Bath, 1472 sq ft Home and 7560 sq ft Lot

9640 Stanwin Ave   4 Bedrooms, 2 Bath, 1612 sq ft Home and 6473 sq ft Lot

9806 Woodale Ave  2 Bedrooms, 2 Bath, 1222 sq ft Home and 6300 sq ft Lot

13580 Bromwich Ave   3 Bedrooms, 2 Bath,  1236 sq ft Home and 6105 sq ft Lot

13655 Muscatine Ave   3 Bedroom,  2Bath,  1274 sq ft Home and 5616 sq ft Lot

The measurements  on homes and lots provided by tax assessors. I f you are thinking in buying and flipping these homes could be a good investment for you, if interested in getting more information, call me at 818 481 9211 or e-mail me at: