Recently corporate speculators started infecting the real estate market. Those are the ones who will get burned.
To me, there is something unsavory about corporate speculation in the family real estate market. It was one of the last bastions where a person could accumulate wealth without fear of Wall Street compu-traders. It has always been the realm of the American family.
I’ve heard a number of reports that investors are buying up single-family houses and condos. And that the presence of investors in the market has contributed to the run up in housing prices, simply because of supply and demand. The demand created by so many investors in the market has pushed up prices.
Then it would make sense if the investors exit the market then prices should decline.
Anyone else remember old rules of thumb, such as you could afford a house costing two and a half times your income? When you look at average family incomes today , compared to housing prices, it makes you wonder how many middle class people are able to afford a house.
If anything, the home owner can hope that building may slow, or stop altogether. It might be nice if property taxes didn’t have the excuse of the present building spree to go through the roof, too.
I’m not counting on any of it, though. Biden makes the sun shine for his grasshoppers.
Prices are coming down. So more families can buy. Why are you bitching?
“Recently corporate speculators started infecting the real estate market. Those are the ones who will get burned.”
Silly capitalist. Those are the ones who will get a tax bailout.
But also consider. With millions of illegal aliens pouring in the government will be paying for their rent. And what better landlord than the politically connected crooks at Blackrock?
I use to think that until the government posted an eminent domain claim on my property at the height of the housing insanity in 2006. Just like that it was gone. I couldn’t afford even the crappiest of place in my city. I ended up moving to another town buying at a very high price. And for fun...l The governor shut down my industry 15 years later to protect us all from the dreaded kung flu. Every awful thing in business and housing, for me, has been directly caused by government. There is no planning or accounting for the vengeance, greed, and stupidity of a bureaucrat.
If someone owns their home, or has a fixed rate mortgage, then there is nothing to worry about.
I know what you’re saying but I would worry if I was upside down in that home.
Quite right. There could easily be straightforward regulation in this regard that better served the nation's broader interests.
Personally, I think the residential real estate market became completely unhinged once homes started to be seen as means of wealth accumulation instead of what they are: HOMES.
We now have multi-trillion-dollar debt markets built on this lunacy, and governments now make idiotic policy decisions just to keep the house of cards from collapsing.
100%. This is who gets burned the most (ibuyers) as they will all dump at once according to this video. About 6 months ago (longer?) an analyst took zillow to task as the inventory of their SFR homes was on the books for considerably more than they were worth so zillow decided to sell. I have no idea if they followed through or not but if they did, good on them. The one I hope to see suck wind is blackrock
Bump