Homelessness is one of the devastating byproducts of the dramatic increase in Bay Area home and rental prices. It can happen to those who would never have thought it possible and may result after unexpected events such a job loss, illness, divorce, or death of a loved one…[There are] 35,000 Bay Area homeless. More than 4000 folks will be homeless tonight in Alameda County and many of them are children. There is no effective housing safety net in our country.Read More
Category Archives: The Economy
By Don Dunning | January 23, 2016
For my entire real estate career, I have maintained a basic assumption, a paradigm, of how the market operates. 2015 was the year I began to seriously question whether San Francisco Bay Area real estate has fundamentally and irrevocably changed.Read More
By Don Dunning | July 17, 2015
Is the current, scorching Bay Area real estate market the new normal or one step away from a daunting descent? As a current or potential buyer or seller, this should be a question in your mind. Reviewing local history, including recent sales, can be a clue to the future.Read More
By Don Dunning | January 15, 2015
“Overspending is a very attractive trap. If people like what they’re doing, despite the worry of debt, they won’t do anything about it.”
– Adriane Berg
This seller’s market leaves buyers “between a rock and a hard place.” Continuing to rent becomes less palatable as rents escalate. For many, it comes down to either buying or leaving the area.Read More
By Don Dunning | March 9, 2013
“It’s like deja-vu, all over again.”
– Yogi Berra
Unbalanced markets lead to unbalanced behavior that buyers often later regret. Today, extremely low inventory combined with record-low interest rates have buyers scrambling to be one of a horde vying to buy a home or condo.
The rules change when a substantial number of buyers compete for one property. This could result in five offers or over 25, depending on many factors. The compelling question for buyers is, “How can I get this home?” The answer, in my experience, can sometimes be detrimental to a buyer’s financial and emotional health.Read More
By Don Dunning | March 12, 2012
In the mid-nineties, I had a listing where the seller did not receive any money back. Instead, he had to write a large check at close of escrow. As years passed, especially the rip-roaring seller’s market of 2004 through 2006, it seemed unlikely that could happen again. Times have changed.
Recent reports indicate that at the end of 2011 there were 11.1 million U.S. homeowners with mortgages higher than their homes were worth. That was an almost four percent increase from the previous three months.
Rather than choosing foreclosure, a short sale or deed-in-lieu, there are hordes of potential sellers stressing over whether they should, or even if they can, write a check in order to sell. I have spoken with many of them in the past three years.Read More
By Don Dunning | October 24, 2011
At the recent fall meeting of the California Association of Realtors (C.A.R.) in San Jose, I heard C.A.R. Chief Economist Leslie Appleton-Young give members a glimpse of what to expect in the 2012 real estate market. Appleton-Young said that “the economy has started to stall and weaken” and "consumers are shaken up."
Just as 2011 is projected to end up much like 2010, 2012 is predicted to continue the pattern. The basic message: Don’t expect much improvement in the near future.Read More
By Don Dunning | June 27, 2011
According to a recent Wall St Journal article, “Tighter Lending Crimps Housing,” over 25% of all mortgages nationwide were rejected last year by the ten largest real estate loan providers. And, this is before new rules take effect that will make it even more difficult to borrow. (See my previous post, “Getting Mortgage Will Be […]Read More