The Housing Market Is Waving a Red Flag
Almost nine years after the housing-market bust helped trigger the most recent recession, RealtyTrac senior vice president Daren Blomquist sees the industry waving a red flag.
The same fervent speculation that abetted the housing bubble is showing up in the bloated share of foreclosures snapped up by third-party investors at auction a record 31 percent in June, according to RealtyTrac data that starts in 2000.
Many of those third-party buyers are "mom and pop" investors with less experience, said Blomquist. At the same time, institutional investors, a subset of the third-party investors who purchase at least 10 properties a year, are ducking out of the market.
"It's somewhat counterintuitive as the market gets better and there are fewer foreclosures available, demand for those good deals, those bargains in the market goes up," said Blomquist. "When you see this high percentage of the properties going to third-party investors, that is a sign that these speculators may be over-inflating the market."
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http://www.bloomberg.com/news/articles/2016-07-14/the-housing-market-is-waving-a-red-flag
msongs
(67,509 posts)Hoyt
(54,770 posts)proverbialwisdom
(4,959 posts)JayhawkSD
(3,163 posts)before the market collapsed. Prices in my HOA are a good 15% above the maximum that they hit before the collapse, and the last four sales were cash.
Is that a good thing?
Response to JayhawkSD (Reply #4)
Chan790 This message was self-deleted by its author.
JayhawkSD
(3,163 posts)Thanks for summing it up so coherently. Yes, right on the nose.
We still have the mortgage that we signed in 1993, and now (nominally) have something like 90% equity in our home. The problem is that the rich newcomers have taken over the board of directors and just passed a $9,000 special assessment to upgrade all of the siding.