Do you think investors who are buying all these foreclosed homes are creating another real estate bubble?
Thursday, March 25th, 2010 at
10:19 pm
This can only be bad. This is how we got in this mess in the first place. Remember the flipping? Remember the sub prime loans? Remember the crash when the property values plunged? Remember when home valeus were rising much much faster than income levels? Tsk, tsk, tsk.
typo- values
Real Estate Professionals
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Tagged with: Buying Homes • Crash • Foreclosed Homes • Sub Prime Loans
Filed under: property crash
It was more caused by the unconstrained flow of credit. People who were not credit worthy were being given loans they had no prayer of affording. Then others used their homes as piggy banks without regard to their ability to pay back the borrowed money. Again, loans given too freely without regard to reasonable risk.
I don’t see any evidence that Investors are creating a new bubble.
I see first time home buyers stretching to get their hands on the $8K credit – that’s a lot scarier to me than investors.
How is that going to cause a bubble? A bubble is when the local economy can’t support the prices of homes. Investors buying foreclosed homes, fixing them up, and selling them is actually good for house values.
Sub Prime loans were less the cause of the bubble than “stated” deals, which could actually be A paper, and the option arms. People were focused on their initial payment, and not what they were actually paying for the home. You would see people paying 600 bucks for a 450k home. They only heard the 600, not the 450k.
Generally Real Estate Investors are more knowledgable than your average buyer. If the Real Estate Investors are buying, that is a good indication that prices have hit bottom in the area where the Real Estate Investors are buying.
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I agree with you. Maybe not a another bubble, but definitely another irrational price inflation. I have seen multiple homes that (obviously, investors are buying because they are cash offers for much more than the property will ever appraise for) go on the market at 12pm and by 5pm have 10-20 offers and within those 10-20 anywhere from 2-6 cash offers considerably above asking prices. This market is much like when the PT Cruisers came out. They were selling those cars for almost 30000 and now you can get one for about 10000. The economy (especially in CA where I live) cannot take the investors driving up the prices again.
I am not seeing a lot of investors here buying homes.
Zij veroorzaken problemen door wat zij voor de gemiddelde persoon doen die probeert om een fatsoenlijk huis en een lage betaling te kopen en te hebben. Wij betalen hoge huur en 2 maanden geprobeerd om een huis te kopen, bieden wij, verschijnen de investeerders met contant geldaanbieding en wij zijn uit het lopen. Bijna onmogelijk voor iedereen in de markt van Phoenix AZ om een huis voor zich op dit ogenblik te kopen. Waarom zijn er geen beperkingen op investeerders? Ziet de overheid wat niet hier gebeurt?