It’s been a while since I did a Porker’s Index and they’re always fun.
Since I’ve got foreclosures on my mind lately let’s start with…
… not quite what I had in mind.
The Shadow Market
“Shadow market” in terms of home sales refers to incomplete short sales, pending foreclosures, and homeowners who are at least 3 months behind on their mortgage payments.
Unemployment in Chicago
August 2010: 11.4%
August 2012: 10.3%
Mortgages over 90 days past due in Chicago
August 2010: 10.4%
August 2012: 10.2%
Amazing how little has changed over the past two…
Months’ Inventory of Distressed Property, Chicago Metro Region
August 2010: 30.2
August 2012: 19.4
Moving right along, one of the main problems with distressed properties (short sales, foreclosures, and delinquent mortgages) is people spending too much on their mortgage payments.
Mortgage Overspending (more…)
I guess we all get a little nervous when new people move to town.
So this is a practical shelter blog, which means that I’ll be talking about affordable housing quite a bit going forward. People tend to get all up in arms about affordable housing and write me off as some kind of left wing crystal-gripping-mantra-chanting hippie when I use that term so I wanted to take a moment to talk about what it actually means.
“Affordable” does not mean low-income housing. “Affordable” does not mean Section 8 housing. It doesn’t even mean “crappy low-rent vintage housing with leaking windows and creaky porches.” When I talk about affordable housing – in particular, affordable rents – I am talking about housing that costs less than 30% of the average person’s gross income.
So let’s say that you’re earning under $35k per year. That’s a little above the median income for Chicago rental households. According to a 2011 survey by the Depaul Institute of Housing Studies and a recent study from early 2012 from the National Housing Conference, 75-80% of you guys are paying more than is considered affordable. 24% of you are paying more than half of your income in rent. This does not make it cool or okay to do so. In fact, I’d go so far as to say that you guys are holding us back economically. (more…)
New Rent Report Suggests Possible Bubble – CNBC.
That article up there? It’s written with one purpose – to make you panic and buy stuff.Â Courtesy of CNBC.com comes some hype about the rental market. Apparently a new report from Zillow shows rents rising in almost perfect proportion to home sale price falling nationwide. They specifically talk about the high year-over-year rent growth for Chicago, as shown in this month’s Rent Bacon.
Investing in the rental market requires a level head that can stay above the hype. If you feel like you’re running to catch up with the investment market, stop and take control of yourself.
Of course, the media will take any statistics on the housing market they can get and turn them into hype. If they don’t provoke your emotions, you might use your logic to make a decision, and that never works out well for them nor for their advertisers. But they are trying to manipulate investors in the rental market by using the same tactics as those that worked to make home buyers and sellers all crazy and depressed.
They’re doing it wrong. (more…)