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hanera
2014 Jul 3, 5:55am
Who is buying from them?
Another hedge fund or big investor?
A bunch of retail investors?
Cashing out has minimum impact on RE unless they are dumping them.
John Bailo
2014 Jul 3, 6:14am
Cashing out has minimum impact on RE unless they are dumping them.
First time homebuyers who can now get houses at reasonable prices in some areas.
What I've been seeing is process like:
REO business (or person) bought foreclosed home at bargain basement price in 2007.
Spent year or to fixing it up, bringing to rental quality.
Maybe got a renter or two...then found difficulty.
Then puts it on market, hoping to get big return (but from the bargain basement price), so effectively, a low cost, low end home becomes available for a couple or small family.
(This is the opposite of what was said about these homes being left to rot and decreasing the number of units).
These homes at the current price are neither so low to be worth buying as investments, nor so high as the "homes a banks" properties is established expensive cities and their bedroom communities, but they are affordable and payable with a normal job or even two minimal wages.
I see American Homes for rent buying everyday still at jax foreclosure auction...
HydroCabron
2014 Jul 29, 3:58am
It has never been a better time to sell an Executive Travertine Family Home!
Sell now, or be priced in forever!
http://ochousingnews.com/blog/reo-rental-hedge-funds-cashing/
A wave of consolidation in the REO-to-rental business has hedge funds selling bulk portfolios. Will this impact the housing market?
In early 2012, the REO-to-rental business model was projected to be a $100 billion industry. These investors provided a significant boost to housing demand in 2012 and 2013, but the activity of these funds abruptly stopped in 2014 because prices became too high to meet their return thresholds. Last July, a local housing market analyst sounded the alarm that institutional buying was an unstoppable Juggernaut destined to cause problems. I thought his concerns were baseless because these investors would turn off the money spigot as easily as they turned it on (See: Investor activity to plummet, home sales volumes will drop). Obviously, these funds have turned off the money, which is one of the reasons sales are down so much this year.
Source: http://ochousingnews.com/blog/reo-rental-hedge-funds-cashing/#ixzz36PermyQJ
#housing