Despite recent chatter about whether certain markets are entering housing bubble territory again, Realtor.com reports that though price appreciation is a concern, in regards to other contributing factors to housing bubbles, these potentially risky cities are far from facing a housing bubble. In the research report, the answer to this chatter was sought in order to analyze the record-high median prices in high-profile growth markets like San Francisco; San Jose, California; and Austin, Texas.
According to the report, the U.S housing market has improved dramatically since the depths of the recession with home prices in particular growing significantly in recent years, nearing a full nominal recovery nationwide.In the analysis, it was evaluated that a housing market’s bubble potential was based on six factors quintessential to the housing bubble and subsequent housing crisis in the 2000’s. These factors include real price appreciation, house flipping share of overall sales, mortgage transaction share of overall sales, price to homeowner income, price to rent, and new households per new construction starts.
Following Ocwen’s reported net loss last week of 87 million dollars for Q2, Nationstar Mortgage Holdings reported on Tuesday a net loss of 92 million dollars for the three-month period ending June 30. Still, there were positives in Nationstar’s earnings report for Q2 2016. On an adjusted basis, the Dallas, Texas-based servicer’s net income was 52 million dollars, with the three major drivers for growth being strong servicing performance, a favorable originations environment, and property sales growth in the company’s Xome segment.