Posted on 07/22/2015 7:44:49 AM PDT by SeekAndFind
Houses are like stocks??
During the housing bubble some years ago, at that time, I heard that about 30% of homes were owned by investors, not by owner occupants. So people treating housing as an investment, and not just buying a house because they want to live in the house, is nothing new.
But are we repeating mistakes of the past, if we are pushing easy mortgages as a means of people acquiring real estate??? Is that wise???
Not in Northeast Ohio.
The Chinese angle, don’t forget the Chinese angle.
Millionaires in China ( of which there are many ) are repatriating their money and putting them in Canada, Australia, New Zealand, the UK and yes, the good old US of A.
My wife, a real estate agent sold several houses the past year — ALL OF THEM TO CHINESE BUSINESSMEN ( we live in NY ).
Not in NEPA
Key word here also is “existing homes”.
I would also like to know how many of these are foreclosure purchases by house flippers.
It is another bubble.
However, if you are planning to sell now is a good time to do it. Then hang on to the money for after the bubble bursts and you can pick up a nice house for cheap.
I do not see that here in New England as far as easy money. The mortgages being issued around here are based on 10-20% down or more. Existing homes in my town are selling fast. I have seen homes go under contract anywhere from $275K to $800K.
We are seeing a lot of cash purchases her in north Idaho....investors have come back with a vengeance.
Problem is, they are paying top dollar for small homes and those wishing to refinance are seeing those values and hope their homes appraise for much more than they are really worth.
We saw this back in the boom years and everyone lost their shirts.
Appraisers are once again being challenged to inflate values by the home owners which will ultimately lead to being upside down once again.
Good thing the Fed isn’t creating any inflation by creating too much money.
Yep, too much cheap money chasing too few opportunities.
Bubble city.
May neighborhood is turning over like crazy with new buyers all of whom bought homes with just 5% down.
How many are foreclosures?
In Los Angeles, people are buying up little old houses and putting up $2 million houses with zero lot lines.
The feds are committing the same mistake. Tons of FHA and 0% loans are still being written. In my rural southern Oregon, low income people can qualify for the USDA loan 0% down, seller concessions, seller pays loan fees, escrow and insurance and taxes for the buyer. The buyer gets in with at most $500 down, most of the time they get it back at closing. Can't find a rental that cheap.
Putting mine on the market hopefully in 2-3 weeks. Needs some cleaning and some touchups. Hope to make a little off of it. Bought a new home about 45 miles north of Dallas, and moved this past weekend. I think I lost 20 lbs in sweat!
Caveat Emptor!
Here we go again. Last time, I saw articles like this, we had a economic collapse shortly after...
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