Chicago Housing Bubble

More on the credit extension

On the normal set of "This Month In Real Estate"... here's more information on the homebuyer tax credit.

*Yawn*

Fair housing laws - not just for class anymore

When you become a Realtor, you have to take classes and learn all the ins/outs of real estate finance, ownership and (most importantly) fair housing.

Fair housing laws are those laws that protect groups of people from being discriminated against when it comes to housing. The simplest example is a white owner who won't sell/rent to an African American. But family makeup, religion and other things are off limits for discrimination.

When I took these classes years ago, I spent a lot of time wondering who the scumbags in the world were who would actually discriminate against people for things like religious beliefs, race, etc. And now we've (apparently) found one - LA Clippers owner, Donald Sterling.

According to the article, he's had 2 (yeah - he didn't learn his lesson the first time, he's at it again) of the largest penalties/settlements EVER in Fair Housing. The latest settlement is “the largest monetary payment ever obtained”.

(I'll never understand racism - not only is it ignorant, but hey - it's bad for business too). Here's the article.

Give me boring (or: Homebuyer tax credit renewed)

Realtors and homebuyers rejoice! The 1st-time homebuyer tax credit has passed the Senate and House and awaits the president's signature to be put into law. I try to avoid ranting as much as possible (and am usually unsuccessful), but I'm going to rant for a second...

This is a bad idea. While I'm happy for buyers who will get a "free" $8,000, all this does is continue to artificially prop up a market that needs to take it's medicine. Homeownership rates are still above historical averages. And when we make it easier for people to be homeowners, we disrupt the natural market balance that led to a boring but predictable 5.5% return average (in the US) since 1955. A boring, but stable market is better than a hot market that eventually goes very cold, then very hot, then very cold, etc. Give me boring - it makes it easier for people to build wealth.

Here's a handy little chart that does a side/side comparison between the "old" credit (that expires 11/30) versus the "new' credit (on/after 12/01). Post if you have questions.