IMO this is a bounce. The investors aren't going to get great returns, some will get creamed if they stick around for too long.
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Home prices have really gone up the last few months.
- Thread starter peilthetraveler
- Start date
Quote from trade2live:
IMO this is a bounce. The investors aren't going to get great returns, some will get creamed if they stick around for too long.
One may take the opposite view that if the Fed is successful in creating significant inflation, then one should stick around long enough to benefit from that and the absurdly low fixed interest rates.
Trying to make money short term from real estate is difficult due to the high transaction costs. Despite the internet, brokerage commissions have not materially changed compared to pre-internet era.
An ultimate rise in interest rates would be bad for housing prices, but from a higher level.
Quote from BlueTurtle:
supply is being controlled. very few houses on the market. decent demand. lots of people paying cash, or 40% down.
I know lots of agents.....
California.
the market is nicely controlled now....
banks holding on to tons of junk....
Totally. The real strength of the market -- the middle class -- is not there, forbidden by restrictive credit requirements.
Housing is not a market. It's a buyers club.
There is still one hell of a shadow inventory. Banks, HUD (FHA), and VA are still holding on to a huge inventory of foreclosed houses. And don't be fooled by occasional statistics showing fewer foreclosures; banks are participating with their underwater Seller-mortgagors in helping them sell via Short Sales, a form of principal reduction, lessening the banks' inflow of foreclosed homes.
Shadow inventory 2: Lots of frustrated, would-be sellers are still holding on until the market improves sufficiently to get them less under water. They, too, will become foreclosed upon eventually or do Short Sales if their Banks will participate.
The younger generation don't want to buy, especially those that need to remain mobile to find work.
Shadow inventory 2: Lots of frustrated, would-be sellers are still holding on until the market improves sufficiently to get them less under water. They, too, will become foreclosed upon eventually or do Short Sales if their Banks will participate.
The younger generation don't want to buy, especially those that need to remain mobile to find work.
I hear ya, there are a lot of houses that need to be sold, and they need to be sold at any price, just to get them off the banks booksQuote from deucy28:
There is still one hell of a shadow inventory. Banks, HUD (FHA), and VA are still holding on to a huge inventory of foreclosed houses. And don't be fooled by occasional statistics showing fewer foreclosures; banks are participating with their underwater Seller-mortgagors in helping them sell via Short Sales, a form of principal reduction, lessening the banks' inflow of foreclosed homes.
Shadow inventory 2: Lots of frustrated, would-be sellers are still holding on until the market improves sufficiently to get them less under water. They, too, will become foreclosed upon eventually or do Short Sales if their Banks will participate.
The younger generation don't want to buy, especially those that need to remain mobile to find work.
Quote from deucy28:
There is still one hell of a shadow inventory. Banks, HUD (FHA), and VA are still holding on to a huge inventory of foreclosed houses. And don't be fooled by occasional statistics showing fewer foreclosures; banks are participating with their underwater Seller-mortgagors in helping them sell via Short Sales, a form of principal reduction, lessening the banks' inflow of foreclosed homes.
This is interesting to me because I wrote somewhere on this site, way back in the early days, that gov't would end up being the largest property owner in the US.
Mouths of babes and all.