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I don't see the home price rises here in San Antonio like even Dallas seems to be having. I'm renting now in a neighborhood that is full of rentals. These were built at the top of the bubble, so owners not wanting to bring cash to close are renting them out. Real estate is purely local.
The investor buying was mostly low end houses. Witha 30 year fixed, your loan balance would need to be over $700k to have increased by $400/mo. if thats the market you are shopping in,not sure why you're concerned about investors dumping a bunch of sub $150k homes. Different markets entirely.
Depends on the area. In some areas lower end houses are 400k or higher.
Securitizing mortgages didn't work out - it essentially crashed the entire financial system... so now they'll securitize rentals... gotta love "banks".
One things for sure, with all the rising prices and bidding wars you have to put up with the flippers and other people who post here creaming themselves about how 'great' things are again that the average person has to go into indentured servitude to afford a home again while the people with the cash along with the slumlords go and buy up the inventory and drive up the prices. Just like the CNBC stock market cheerleaders except a different asset class. They'll keep on cheering until the day it crashes again.
What we need is some hyperinflation... it will level the playing field again and devalue all the rich people's money, while wiping out the debt on all the average person's mortgages. Wipe out all the outstanding debt and start with a clean slate. The people with money continue to get richer while the wages of the blue collar worker continue to get cut and it's just not sustainable from a practical standpoint along with the out of control health care costs going forward. It will be fun to watch and see what happens.
Depends on the area. In some areas lower end houses are 400k or higher.
You obviously haven't been reading much about the large volume purchasers by institutional investors. The median price paid by these groups is around $150K and they focus on newer homes. The areas with $400K low end homes were not a significant part of the institutional investors portfolios.
I'm not sure about other markets, but after taking mid-June to mid-July off things are moving fast here again. I guess everyone is back from summer vacation and realizing that though rates have gone up, they are still low and sure to rise in the future.
What we need is some hyperinflation... it will level the playing field again and devalue all the rich people's money, while wiping out the debt on all the average person's mortgages. Wipe out all the outstanding debt and start with a clean slate. The people with money continue to get richer while the wages of the blue collar worker continue to get cut and it's just not sustainable from a practical standpoint along with the out of control health care costs going forward. It will be fun to watch and see what happens.
Even the type of wheelbarrow hyperinflation that produced QUINTILLION dollar notes, ala Hungary 1946, would not destroy the current dictatorship assumed by finance capital.
A true Deflationary spiral, where leverage and all asset classes are dissipated would be much more liberating for the average blue collar person you speak of. Deflation raises the common man's standard of living without the ability of government to tax it away.
If we truly wanted to level the playing field as you speak of above, in our minds we'd want to destroy leverage. After all, leverage is at the root of all bubbles.
Unless you regard/define Jack Dorsey's attempt---and others like him---to streamline our system of commerce and jettison us into a cashless society as old-fashioned, conventional production, I see no way escalating housing prices can be sustained long term.
Blackstone/others are laying the ground work for rental costs going up in 2014; they know there's no new homebuyers able to buy homes. Also, real estate can't sustain itself unless RENTS GO/STAY UP.
When Blackstone/others go on another housing shopping spree, it will be because the USGovt/virtual taxpayer will be backstopping their rental costs, while masking the reality of the emerging middle class section8!
The basic fact is that home prices have nowhere to go but down.
We are in a deflationary period that the fed is trying to money print away. Deflation is actually a good thing for the people. The banks want to scare you with inflation talk into acting now…buy now! Things become more affordable when deflation is allowed to happen. The housing boom will be over soon and we will once again be fooled by these banks…it hurts to watch this again.
Meanwhile the banks are in a desperate bid to pump and dump this market. They love all the cash buyers and the government loans. They are getting their bad loans off their books onto yours. They are not making loans for the common man, they are using your bank deposits to gamble with your money.
They want you to come play at their field…the stock market and housing market. They want you to invest in their game…the only game in town so they can play you! You think you are playing with them but the game is rigged and they will let you know when they are done with you…when they have all your money. You think you are doing great in the market now wait till they pull the plug and you are back at 2008-2009 or worse levels. You gotta play with them but they know you never quit at the right time…they got us where they want us…we are pawns in their game.
When interest rates are on the downtrend housing is very profitable and is a very good investment. Interest rates have bottomed and have no where else to go but up and that makes housing a negative investment. Labor participation rate and stagnant wage growth will further depress this market.
It is hard to go against the crowd and not buy a house. The housing market will crash again and the stock market will crash again. You will save yourself a lot of future heartache if you rent for the next few years and wait for housing to crash and take your money out of the stock market before it crashes also. Save your cash for the crash!
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Waiting for the USGovt green light
