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Yes, Investors Rule

By David9 follow David9   2013 Feb 5, 2:33am 1,983 views   2 comments   watch   nsfw   quote   share    

The article speaks for itself. Some main points:

"Other markets that saw the most distress during the housing crash, like Phoenix, Las Vegas, and much of California, have also seen so much investor demand, that prices are up by double digits from a year ago. "

"Phoenix leads the pack, with prices up 26 percent from a year ago, according to Clear Capital."

"Investors have cleaned out the inventory so much that they are now bidding up prices higher than any expectations, and that is pushing many potential owner-occupant buyers out, especially first-time home buyers."

"In St. Louis, Chicago, Charlotte and Dallas, distressed properties are making up about one third of the market, often higher than markets out West, but home prices are either flat or down annually, a far cry from the jumps out West. That is because investors are not as interested in these markets."

"Most of the investors in those bubble markets are big money, hedge funds"

"Most predict prices will continue to rise through 2013, but prices always lag sales, and these prices are reflecting the sales of last year, the investor sales. If sales do not continue to be strong, and lately they have not been, then prices could easily turn in the hot markets and worsen in the still struggling markets."



1   David9   ignore (0)   2013 Feb 5, 2:44am     ↓ dislike (0)   quote   flag      

robertoaribas says

prices seem to be stable to rising.

Yes, that is what the article says, prices up 26% this year in Phoenix. They claim, and I would agree, as prices are flat in Dallas, this is because of investor interest and activity in the market.

As for the future, I really don't have a guess right now.

2   David9   ignore (0)   2013 Feb 5, 3:31am     ↓ dislike (0)   quote   flag      

robertoaribas says

For the next few months, they are going to keep going up, I have little

I was just thinking that. The market moves in months. Here in California too, prices have risen (do too the investor activity I believe), so, this will continue, or if it stalls, it would still take months and more inventory for any change to occur.

1. sales are down year over year
(Kinda like I heard this morning on the radio about the stock market: "How can it be rising when the economy is near or at shrinking and unemployment is so high ?" Because the corporations the stock market represents are totally disconnected from the American economy and the corporations find healthier markets and business in Europe and Latin America, as opposed to the stagnant consumer markets here)

2. foreclosures are way down year over year
3. notices of foreclosure are spectacularly down year over year
(Thankfully, that would have to end some day.)

4. inventory is still under last years, but the gap has been shrinking over the past months.
(No inventory, in my opinion, especially here in California will bring out the herd mentality and raise prices, thus, I am not surprised the market is flooded with investors clear out to Fontana.)

For me, I can choose to pay 40 or 50 percent more as opposed to 30 percent more here in California as little as 6 months ago, lol. Or, as I have been, keep watching .. cashed the check from Dallas yesterday, there is no hurry.

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