How much foreign money is in there too?
After the last collapse, my brother in law (Lives in Phoenix) walked away from many homes there that he was using as investment instruments.
He’s back. He’s flipping an average of one home a day.
And meanwhile, a friend is STILL in her house in Seattle. She has not made a house payment now in over four years. She keeps stringing the bank along and they keep threatening “this time we mean it”. Not so far...
What a world.
I trust nothing at face prtaining to the economy anymore reported by the MSM. They only report what they are told to by the spin doctors in the WH. In fact, I bet there’s a whole department of the Obama administration that is devoted to propaganda, lies, and deception. It really would not surprise me one iota.
Warren Buffet advised investors to snap up foreclosures and short sales last year, and they are following his advice. The USA will be a nation of renters as it was during the last Depression, but don’t expect Bloomberg TV or CNBC to report this unpleasant truth.
Blackstone Partners have a vested interest in stabilizing the housing market. They own about 30 contractor lumber yards through their subsidiary USLBM. Many of these lumber yards were also purchased when they were in distress, ie bankruptcy.
I currently sell a few of them from IL to CT. They are a large investment company. They look at this as an opportunity to buy cheap. They have already sold a couple of these lumber yards(in Indy) when one of their competitors made them an offer to good to refuse.
However, I disagree with the premise of the article, at least from my first hand experience in selling my house here in NH. Four out of the five offers I had on my house were from first time home buyers. All of them were looking to live in the house.
The houses that have sold to investors in this area are mainly to the house flippers type. For example, there was a house we were looking at to buy about 6 months ago. It was owned by Fannie Mae. It sold for $280K or less(this was the asking price when it when under contract). It just went back on the market for $425K. However, it is in an area where the abutting homes are in the $500K- $1M range. I wanted to buy this house BUT the boss(Mrs. Woodbutcher) did not like it. We bought another house about 2 miles away for $270K. We sold our house the first week of February for $260K in 8 days.
This is simply “The Housing Boom”, Part Deux.
Fake?
It’s one thing to analyze data and reach conclusions about the structure of a market, and it’s another to claim that a market doesn’t exist. Conservatives are so committed to bad news on the economy that they say a lot of very stupid things.
Agree with this.
My daughter sold her “vinyl village” ranch in a nice suburb here in Indiana to a California investment outfit.
The listing was “live” for about 36 hours.
They paid 98% of the asking price and closed immediately.