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???
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 ).
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.
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.