Weekly News Round-Up

Can’t afford a home in the Bay Area? Well, a new report from the National Association of Realtors (NAR) and Wells Fargo Housing Opportunity Index (HOI) was released last week with the most affordable cities in the nation (based on housing prices and median income). How would you like to live in Kokomo, Lima, Cumberland, or Lansing? The top 10 cities in the report don’t come near a coast (Cumberland is the closest), 4 are in Michigan and 3 are in Ohio. On the other hand, if you want to live in one of the least affordable cities, every single one is in a state that borders an ocean. Not surprisingly, 7 of the cities are in California, 2 in NY and 1 in Florida. Our little corner of the world ranks third in the dismal list, which says that only 12.5% of us can afford homes (at our current income level and current prices). Thank goodness some of us bought “back in the day” or we’d be moving east…..

And it’s a good thing you cannot afford a house, because the chief strategist over at Charles Schwab says it is a bad time to buy. Interviewed by Aaron Task over at Yahoo Finance (video clip included), Liz Ann Sonders says prices will continue to fall and mortgages at today’s rate (about 6%) adjust to 15% when you take into consideration the depreciating market. It’s all sooooo complicated, it makes my head spin, but to see her take on the subject, you can check out the article and video here.

The NAR, which always seems to take a lot of flak for their overly cheerful and optimistic advertising, got stung this week by the Department of Justice. In 2005, the DOJ sued the NAR to allow listing information to be shared equally. The case was settled yesterday, with the DOJ victorious, and you as a consumer will benefit from this. For more information on this development, you can read the Redfin Corporate blog, where esteemed leader Glenn Kelman explains the ins and outs of the settlement.

There has been significant debate on this blog on the subject of rent v. buy. Being a homeowner for the last 20 years, I read the back and forth with interest. All very illuminating, as is the mot recent New York Times article on the subject. “As Home Prices Drop Low Enough, a Committed Renter Decides to Buy,” by David Leonhardt is a first-person tale of a change of heart in this changing market. He breaks down the decision to buy simply, logically, and admits to a possible mistake. He tells a good story, has some decent advice, and although he bought in Washington, any renter in any state might find some helpful hints here. And a big thanks to The San Francisco Real Estate Blog for the heads up on this story.

Again, kudos to the Bay Area for scoring 3 of the Top 10 Greenest Cities in America slots. San Francisco came in at #2, Oakland at #4, and Berkeley at #7. For the full story, check out the Greening of the Bay Area. Also on our local blog is new developments on the Fannie Mae and Freddie Mac front: “Fannie and Freddie Helping Out the Jumbos” and “Fannie and Freddie Abandon ‘Declining Markets’ Policy.”

Other Recent Sweet Digs Posts:
Oakland: Selling Above Asking
Hooray for Progress
SF and Daly City: For Sale By Owner Listings Appeal to the DIY Spirit
Foreclosures cost responsible condo owners $