Your analysis is valid.
One totally new factor is institutional investment in single family housing.
This is very important because housing prices are determined by actual transactions—and last I saw only about 5% of single family houses have a transaction in a given year.
Active institutional investors can (and have) caused housing prices to skyrocket in “hot” markets.
If they panic and try to sell in large quantities they can (and imho will) cause a major crash as well.
“One totally new factor is institutional investment in single family housing.”
As I stated above, Blackrock and other institutional investors are buying up property at an alarming rate and have been for a while. This has driven up costs at an astounding rate. Why do they want these properties? Where is the ROI? I see it as another far left groups of communists or socialists actively working a plan to destroy the housing market so people in the middle will be forced onto gov housing, and guess who supplies housing to the gov?
“””One totally new factor is institutional investment in single family housing.
This is very important because housing prices are determined by actual transactions—and last I saw only about 5% of single family houses have a transaction in a given year.
Active institutional investors can (and have) caused housing prices to skyrocket in “hot” markets.””””
I believe the following is the reality behind Blackrock, Fidelity, State Street, and Vanguard buying up single family homes.
These mega-mutual funds were sent a message that Biden was going to bring in 10 million illegal invaders into the USA and Biden was going to need a lot of single family housing across the USA to house the invaders.
So the mega-mutual funds bought up a huge number of houses and the mega-mutual funds are now renting those houses to the FEDS and the FEDS thru their NGO’s are placing illegal invaders in those rental houses.