Foreigners = Chinese from China and Hong Kong. These group of people are also pushing up Singapore property prices to stratosphere.
Has the Fed historically always announced their intentions to raise interest rates up a a year out like they are now?
I am interested in understanding the pyschology of knowing mortgage rates are going to be higher 6 months and how that affects demand right now. I would think that would increase FOMO right now and in spring/summer. But by fall, some of that could wane.
The typical market sentiment is hot during Spring, moderate in Summer, start to cool in Fall and cold in Winter. So how to tell whether what you say is seasonal or due to Fed uttered plan?
I can’t that’s why I’m asking you guys 
I’m not sure further rate hikes will increase mortgage rates much. Once people expect the hikes, then the bond yields move which moves mortgage rates. Just look at how mortgage rates are up 2% on a 0.25% rate hike. It’s the expectation that the other 1.75% will happen. It’d be irrational to buy 10-year bonds at the current rate knowing the number of rate hikes that are coming in the near future.
I’m sure some buyers are were trying to buy before rates increase. Now that rates are higher I think the more important impact is on inventory. People with 3% mortgages aren’t going to sell to buy with a 5% mortgage unless there’s something else happening. If people though inventory was tight before, it’s about to get worse.
They’re still forecasting 5% growth over the next year. That’s hardly doom and gloom.
Interesting is Bay Area not deemed overvalued by Corelogic? The map(which is hard to read because it’s not SVG/not_scalable) seems to show Bay Area is “Undervalued” and some areas as “Normal”?
The real estate firm calculated a market risk assessment for around 400 metropolitan statistical areas. CoreLogic aimed to find out whether local income levels could support home prices. The result? CoreLogic deems 65% of U.S. regional housing markets to be “overvalued.” That includes major metropolitan statistical areas like New York, Miami, Seattle, Las Vegas, and Dallas. Every major market in Arizona, Florida, Texas, and Nevada meets CoreLogic’s definition of “overvalued.” Meanwhile, CoreLogic says only 26% of U.S. housing markets are “normal” and just 9% are “undervalued.”
Top 10 cities with the least space for $350K
1. San Francisco, CA: 349 sq. ft.
- New York, NY: 404 sq. ft.
3. Fremont, CA: 428 sq. ft.
- Boston, MA: 477 sq. ft.
5. San Jose, CA: 478 sq. ft.
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Irvine: CA: 528 sq. ft.
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Honolulu, HI: 532 sq. ft.
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Los Angeles, CA: 538 sq. ft.
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San Diego, CA: 540 sq. ft.
10. Oakland, CA: 581 sq. ft.
I am surprised by Fremont being #3
