Right, but in this case you’ve got very high inflation at the same time. Also, various private equity and investment bank vehicles can play with both their expanding direct residential portfolios and MBS, so the properties could be scooped up in record time. (As well, millions pouring in through our wide-open border are putting increasing pressure on housing prices, increasingly played out through rental markets.)
True enough, but all investments are a gamble — even for massive expertly run funds buying up residences in a hot market. Zillow’s unit doing that just got burned badly by high renovation and carrying costs and diminishing sales prices. After large unexpected losses, Zillow shut the operation down and took a write off.