Section Two: Housing Miami was hit very hard by the sub-prime mortgage crisis of 2008-2009, but

The housing crisis of 2008 can trace its origins back to the stock market trends of the mid- to late 90 's. During a period of extended growth in the stock market, increased individual wealth among investors led to generalized increases in spending, including in the housing market. With more disposable income in the pockets of consumers, the demand for housing increased in the late 90 's. Due to the fact that homes are large projects and their construction takes a large amount of time, the supply of homes in the market is inelastic on the short term. Because of the fixed supply of homes, as per the law of supply, which

In the United States, the lending industry’s lack of aggressive monitoring was a big part of the housing market crash of 2006. The Las Vegas housing market, once a booming industry in 2003 to 2005, is now one of the top 3 cities in foreclosure properties. I sat with Suzanne Pashnick to get her take on what happened, who is to be blamed and what can be done for the city to recover. Suzanne has been in the real estate field since 1995 and began her career in Michigan. In 2005, she moved to Las Vegas and continued her career in real estate and is currently an agent for CENTURY 21 MoneyWorld and remains licensed in Nevada.

Where there is darkness there is ultimately light and the various homeownership opportunities under the current economy reflect this notion. Real estate prices

Florida, CityLab Richard. “This Is What Happens After a Neighborhood Gets Gentrified.” The Atlantic, Atlantic Media Company, 16 Sept. 2015,

The hot economy and job market in the Bay Area contributes to a severe housing crisis, which causes a lack of affordable homes and apartments for middle class families. Extreme cost of housing has developed as a threat to the state’s future economy and quality of life. The debate over housing has become the center of state and local politics with the

Meanwhile, yearly house price inflation rates in the top 20 cities are running in line with the national trend. The cities with the highest rates of increase are Seattle (+12%), Portland (+10%) and Dallas (+9%). Lower tier property prices appear to be more volatile than their high end counterparts in both Seattle and Portland. Meanwhile, the three cities with the lowest rates of house price inflation are New York (+3%), Washington (+4%) and Cleveland (+5%). Furthermore, rising house prices appear to be having an adverse impact on affordability. According to the National Association of Realtors, rising prices are offsetting higher disposable incomes and stable mortgage rates, and affordability has consequently been declining since January 2015. Partly driving the increase in prices is a lack of available supply of existing single family homes for sale. The number of months’ of unsold inventory was just below 4 in March and availability has been gradually falling since 2014. Additionally, there is a relatively tight supply situation for new single family homes for sale, which is also helping to support prices.

As of December 2015 more single family homes entered the marketplace for sale and with sales volumes increasing as these properties appreciate in value. Today’s trend has recovered more than 50% when comparing the previous real estate market peak year prior to

In 2007, there were over 1.28 million foreclosure filings. The number of foreclosure filings remained above historical national averages for eight years, growing every year until 2010, when levels capped at 2.87 million. According to RealtyTrac’s 2014 Year-End U.S. Foreclosure Market Report, national foreclosure filings--including bank repossessions, default notices, and scheduled auctions--saw an 18 percent decrease from 2013 to 2014, but still had not reached pre-recession levels. In 2015, nearly 700,000 of boomerang buyers will be eligible for new homes, according to TransUnion. Over the next five years, 2.2 million borrowers will again be eligible for mortgage credit as their seasoning periods expire.

By the 1970s, HCTI ratios increased to over 5:1 (U.S Census). Figure I denotes the housing appreciation trend in light blue has accelerated at a higher rate of speed during the past 40 years (Shiller, [2005]). Over the past 40 years housing values on average have doubled at the end of a housing boom, out pacing increases in median income by 50% (see Figure II, U.S Census, [1969-2008]). This has led to the median housing expense to being

Several years ago, many of us could not imagine mortgage meltdown ending. It seemed as if the foreclosures/short sales were increasing and the American dream of buying a home was decreasing. Many people felt hopeless and cheated when it came to the economy’s poor status due to the housing crash. Many lessons were learned from the collapse and although it may seem hard to believe, there were silver linings in the mistakes made during the mortgage meltdown. Today, real estate buyers are benefiting from the past mistakes and have more confidence in their home buying purchases.

Miami tops the list of Florida housing markets with the highest volume of jumbo loans with a median sales price of $295,000. Next is Cape Coral-Fort Myers at $212,250, North Port-Bradenton-Sarasota

Additionally, he employs hedonic price analysis to describe the relationship between prices and neighborhood composition under current housing market conditions, which is a concept that I will be exploring in my paper. A defect in this source is that in some of the studies that Harris refers to, some studies only analyze the racial factors that affect a neighborhood and then the other ones that do consider the nonracial factors fail to come to a proper conclusion about what causes the lower housing prices in areas with higher Black populations. There is no study given that considers both racial and nonracial factors and has appropriate conclusion, which can affect the viability of many of the studies used in the source. However, a benefit of this source is that it addresses my three variables that I will be exploring – median gross rent, employment rates, and occupancy status of housing

It seems hard to believe that over ten years have elapsed since the peak of the US housing market in the previous economic expansion. Residential construction as a percentage of real GDP reached a zenith of 6.2% in 2005 Q3. The ensuing contraction saw this share decline -60% to trough at 2.5% of GDP in 2010 Q3. The current economic expansion began in 2009 Q3, but the sheer magnitude of the collapse made it virtually impossible for any subsequent housing recovery to impart the same outsized contributions to headline GDP growth compared to the previous cycle. This has consequently played a significant role in restricting the ability of the economy to shift into a higher gear of growth during the current

Around 2006 the price of houses began to fall substantially fast. “The oversupply of houses and lack of buyers pushed the house prices down until they really plunged in the late 2006 and early 2007” (The Subprime Mortgage Crisis Explained). These actions threw investors into a big dilemma. In the beginning they believed buying the mortgages would bring them a profit, but quickly realized that the mortgages would cost them more financial damage than reselling the homes. “Nationwide, home vales have declined about 16% since the summer of 2006 and experts project that the drop will continue until homes have lost about 25% of their value” (Biroonak, 2008). In other words mortgage homes are “underwater”, that is, the mortgage owed equals or exceeds the value of the house (Biroonak, 2008). Investors and homeowners started to go more in debt trying to pay off their original debts.

In this report, the question “How much of the changes in the median selling price of homes in a city can be explained by the changes in median income of that city?” is answered. Home ownership is an important aspect of one’s life stages, and home prices are determined by demand and supply. The demand curve is affected by the one’s income, such that as one’s income increases, one is more willing to pay a higher price for the same quantity of goods (Baye & Prince, 2014). However, there are many other factors that might affect the demand curve, e.g. no. of children, in the household, the perceived quality of education in the school district, or the number of job positions (filled or open) around the city. According to Burda