H OUSING N EWS R EPORT Named the Nation’s Best Newsletter in 2015 by the National Association of Real Estate Editors By Octavio Nuiry, Managing Editor Are These ThreeHousing Bubbles Re-Inflating?

Could we be headed toward another housing bubble? Ten years ago, easy credit and lax banking lending standards in the U.S. residential real estate market were partly to blame for a housing bubble that popped and caused over 7 million borrowers to lose their homes to foreclosure during the 2008 housing downturn, which triggered the Great Recession and unleashed a global financial meltdown. Today, housing prices are steadily increasing again due to a shortage of new and existing homes for sale. And in some regions of the United States home prices are seriously overvalued, especially in coastal communities like San Francisco, New York and Miami. According to Barron’s , home price increases have been fueled by real estate investors searching for yield in a

low interest rate world and by foreign investors seeking a safe haven to store cash. Rising home prices are bringing out more home flippers too. Last year, 180,000 single family homes and condos were flipped, according to RealtyTrac. Home flips increased in 75 percent of U.S. markets and accounted for 5.5 percent of all U.S. home sales in 2015, up from 5.3 percent in 2014. Last year was the first increase in flips in four years. Now, the question many experts are asking is no longer if, but rather when and how far, home prices will fall in the coming housing crash. Nationwide, the market is not in a bubble, but some local markets are getting frothy, experts claim.

June 2016 Volume 10 • Issue 6


11 Big Data Sandbox:

Housing Gender Gap

12 My Take by

Alex Villacorta, Ph.D. Vice President Clear Capital

14 News Briefs

Bay Area Bubble?

For years, it looked like San Francisco

15 Legal Briefs

Continued Next Page

16 Financial Briefs

17 Market Spotlight:

Sacramento, California

28 Book Review: “Chain of Title,” By David Dayen

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