These new homeowners who were caught up in the “feeding frenzy” shall soon be caught by a complete surprise, if they have not already been.
I have seen these mushrooming housing builds and busts before, tied to an economic collapse, though never to the levels most recently reached. There is still money to be be made when the cycle falls to its lowest price per housing unit, and an investor buys in. Banks do NOT like to hold real estate, and will auction their real estate holdings off to highest remaining bidders.
If you know what a “silent auction” is, that is where the seller has a price set on a property, then keeps reducing the price by increments. The first bid made aloud is the price, and it is sold at that price.
Always remember, price does not equal value. The unwise bidder may still get stung.
“If you know what a “silent auction” is, that is where the seller has a price set on a property, then keeps reducing the price by increments. “
That is NOT a silent auction.
Best Absolute Real Estate Auction story EVER.
Back in the 1990’s the Wang Computer building complex went up for Absolute Auction in Lowell, MA. Hardly anyone showed up including the Bank Representative. The auction started and someone made a bid. It ended up selling for about $675K.
The complex of three large buildings had cost over $7 million to build. The bank rep was not there to make sure the minimum bid price was attained. He ended up losing his job. It made the front page of all the Boston papers.