Harvey’s impact on housing

According to Core Logic, 70% of the houses in Texas are not covered by any insurance. Most people there do not have flood insurance.

One must expect, with dollar losses at the level CoreLogic predicts, there will be a substantial impact on the housing and housing finance industries as well.

Many people will just walk away from their mortgage. Fema money won’t cover the water damage.
So what happens to the banks involved? another melt down? The housing market has gone up so much, people wonder what it would take for another crash. I could not figure out what would do it- but maybe now i can.

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Latest L.A. Home prices

We have hit the previous high for L.A. county. In 2007 the median hit 500k and here we are again. The median is the number that has half more and half less. Prices rose 6% from last April.
So it took 10 years to come back again fully.
Orange county set a new record of 675k.
Once again, people are being forced out of L.A. and looking to the inland empire. Builders are starting to build more puds.
Interestingly enough, if you adjust for inflation, L.A. is still not back up to its former high.
The biggest increases have come from higher priced homes. Only 37% of homes in l.a, county are worth more than in 2007.
Are we headed for a bubble? Not yet,according to Fitch ratings which finds that prices here are overvalued by 5.2%. At the height of the last bubble, that number was 35.7% so we have a way to go.

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