Another entity that had to radically change their business when banks stopped foreclosing was Foreclosure Radar. Their product line has expanded to appeal to the masses, and they’ve kept their market reports coming:
Here is an excerpt from this week’s report:
“News of soaring prices amidst weak sales is fueling speculation that the San Francisco Bay Area housing market is a housing bubble about to pop,” said Schnapp. “It’s not a housing bubble. It’s a market dislocation caused largely by government policy.”
“A housing bubble requires both an unwarranted surge in prices followed by a massive selloff,” said Schnapp. “Today’s high prices are due to a combination of factors. Demand is being fueled by market stimulus in the form plentiful jobs and government-backed low-interest, below market rate loans that require little down. Supply constraints are coming from burdensome regulations on new building.
A massive selloff — a housing bubble bursting — is unlikely because a regulatory change in 2009 means that even if consumers default on their loans, banks will now sit on inventory rather than foreclose and sell like they did in 2008.”
“California’s housing problem boils down to bad government policy. Local, state and federal housing regulations have made it all but impossible for builders to meet housing demand in California’s growing economy,” said Schnapp. “Conceptually the solutions to California’s affordability crisis are simple, but politically we should expect the current situation to continue for the foreseeable future.”