Today’s Originations linkfest. They’re all good, but if you only have time for one, read the Zillow piece by their chief economist Stan Humphries last week. Very god insights. I’m excerpting a key quote below the link.
– Redefining Housing Bottom (Zillow)
Our emerging hypothesis is that, instead of a long, flat bottom with price appreciation constrained by weak demand and elevated foreclosures, we might end up in an environment in which constrained supply (due to negative equity), together with robust demand from investors and first-time home buyers (not weighed down by negative equity), combine to create cycles of home value spikes followed by cooling periods. These cooling periods are created once local home values have risen enough to free some homeowners from negative equity at which point some of these resurfacing homeowners attempt to sell their homes, thus creating additional supply which tempers price appreciation.
– Housing Bubbles & Homeownership Returns (SF Fed)
– House Sales Hampered By Appraisers Not Recognizing Appreciation (WashingtonPost)
– GRAPHIC: Consequences of Euro Breakup (via Jim Pethokoukis)
– Foreclosure Machinery Creaks Back To Life (WashingtonPost)