Wall Street buying boom, new housing bubble on way? (sales, 2013)

[JERSEY MAN]

Wall Street Buying Adds To Housing Boom. Is A New Bubble - Forbes

www.forbes.com/.../wall-street-buying-leads-to-housing-boom-is-a-new-...‎

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Jun 4, 2013 – Wall Street Buying Adds To Housing Boom. Is A New Bubble On The Way? This story appears in the June 24, 2013 issue of Forbes


We'll find out soon enough.

[NJ Brazen_3133]

If there is a new "bubble" maybe we ought to stop it now before it gets to big and bursts, hurting the economy further.

[bradykp]

I guess if these firms down the road just decide to dump houses they own, it could be a "burst", but as it stands now, they're buying up shortsales and foreclosures and updating them, and seeking out families to rent them. it sounds scary if it suddently runs upwards at a fast rate, but in the short term, I don't see the harm. It could get out of control though, people should pay attention (just like they should have asked why homes in 2004 were worth twice what they sold for in 2001, but hey...who pays attention to that stuff????).

[JERSEY MAN]

32 % of all home sales in this country are being paid for in cash.

[bradykp]

Originally Posted by JERSEY MAN

32 % of all home sales in this country are being paid for in cash.

is that a bad thing? i'm not sure where you're going with that state exactly. what's the normal % that's paid for in cash, historically?

[camaro69]

My wife and I were talking about this last night.

We sold our home last Nov and really got beat up, but then again paid an equal lower price where we bought. And now there's no more discounts and the prices have actually gone up.

So for us it pretty much worked out.

But I knew this day would come, but didn't think it would happen this soon with rates and prices up.

People have very short memories, but the one good thing is there's a very high percentage now of cash buyers compared to 2005-2007.

[GiantRutgersfan]

Originally Posted by camaro69

My wife and I were talking about this last night.

We sold our home last Nov and really got beat up, but then again paid an equal lower price where we bought. And now there's no more discounts and the prices have actually gone up.

So for us it pretty much worked out.

But I knew this day would come, but didn't think it would happen this soon with rates and prices up.

People have very short memories, but the one good thing is there's a very high percentage now of cash buyers compared to 2005-2007.

There was a lot of pent up demand that has just been releasing itself in the last year and a half or so. People who otherwise would have bought a house thought twice about it from 07-12.

[NJ Brazen_3133]

Originally Posted by JERSEY MAN

32 % of all home sales in this country are being paid for in cash.

Must be some real cheap homes, or it is a few players doing all that buying with cash?

[NJHomebody]

Must be some real cheap homes

Not necessarily. I know several properties in Essex Co that fall around the 500k mark that have been cash purchases. I don't know how so many people have rich relatives...

[MontclairNative]

Couple bought a manhattan or brooklyn apartment for 750k, now worth 1.2 and add 200k in savings= cash buyer in NJ. They may also be reluctant to put that cash in a high PE stock market, despite low interest rates on what they would need to borrow.