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Best Explanation on the Fake Housing Market Recovery I've Seen
- Thread starter LAM
- Start date
It has definitely been investors buying the homes in Phoenix, which had one of the worst housing busts. During divorces that I handle we end up selling a lot of homes, and the number of cash investor purchases of those homes has been significant.
Lam, I know I'm An idiot who uses way too many buzzwords (those were your words) and I have to say I totally agree with this article. I have know this for about 1.5 yrs as my investment publications have been screaming buy houses for at least that long. Tanks for sharing! So I know it doesn't count for much but there it is anyway...
since Phoenix was the 2nd largest bubble city I had a feeling that this should have been the case there as well. from what I have read in reports from the national association of realtors investors/speculators accounted for a good 40-60% of new home sales in the major 5-6 bubble cities during that manufactured housing boom.
it would only be logical that they would again come back to buy many foreclosed properties, etc. when the market bottomed out even those that may have walked away from houses initially in 2005, etc. as I've always told people when you have access to large amounts of cash credit scores (FICO) doesn't mean shit to a person anymore.
they turned the majority of the US population into permanent renters. simply another form of rent seeking by the capitalist class.
emsmith
Newbie
The job industry continues to stay stubbornly flat, even as a top indicator hints at growth in the housing market. According a brand new report, home prices rose in every major U.S. city in May. That is the fourth month consecutively to show increases.
In Colorado a house lasts maybe 3 weeks on the market. Rents have also gone through the roof. Supply for housing is low and demand is high. My home value is finally back to 2005 levels. Took 9 years. Now they will over build and the market will soften.
Hopefully that doesn't happen but only time will tell. Housing is an asset class that can be manipulated very heavily far beyond that of the laws of supply and demand.
Good find, LAM.
And again reinforces the fact that things are not well.
And again reinforces the fact that things are not well.
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I've been watching the Phoenix housing market go way back up the past couple years. (been thinking of relocating to Phx when I am done here) Kinda wished I had pulled the trigger on a house a couple years back.
the changes made in the capital gains rate in TRA97 have permanently altered the US residential housing market essentially turning it into a short-term commodity. Which means volatility has been greatly increased, you can lose just as fast as you can gain. Remember home equity isn't "real" it's only the fair market value.
Be careful of assuming that the housing market is on the rebound, inventory's have been artificially depressed because banks are keeping millions of homes out of the foreclosure pipeline. It's another reason why there have been increases in home values in many bubble areas that are nearing pre-bubble levels.
Just remember that home equity isn't real, it is only the fare market value which in a short-term commodity is extremely volatile.
Just remember that home equity isn't real, it is only the fare market value which in a short-term commodity is extremely volatile.
the majority of houses being bought are being bought by investors in cash. look it up. there's no real homeowners buying properties for themselves. And with the zero percent rates its causing another bubble In the housing market that's gonna crash when rates start to rise. current housing prices are still far to high. it's still in a huge bubble do to cheap money/ credit.