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WRAL article says "Investors are buying 1 in 4 homes in Raleigh, 1 in 5 in Durham"
I've encountered this, all cash buyers paying WAYYY over list. They obviously don't care about the interest rate or the house and neighborhood they are buying, as their hearts aren't in it to live with their family for years to come.
Now Russia declared war on Ukraine which is do tragic and awful, but I believe is going to effect our economy.
Can anyone explain what gives? We are going to look at homes this evening, but probably don't have a chance and wondering if it is just better to stay put and hold on to our savings in these uncertain times.
However, we have been looking almost a year, and outbid several times. We know we don't want to stay where we are another 10 years and have a specific area we would like to buy into. For us, it is the home and the neighborhood we are buying. I know, however, the bottom line is the cash.
IF one is expecting increasing, possibly hyper-. inflation over the next few years getting some capital into real estate (SFR and farmland) is one of the ways it might be played. Stagflation too. I am "moderately certain" we are seeing flight capital entering into this market as well.
we'd have to find out from Redfin then how they determine that 1 in 4 homes are going to investors in Raleigh.
No D/T (mortgage) issued?
Claimed "Cash" on MLS field?
"Entity vs Individual"?
"Owner Address not equal Property Address" in database (like Corelogic or CRS Data)?
WRAL article says "Investors are buying 1 in 4 homes in Raleigh, 1 in 5 in Durham"
I've encountered this, all cash buyers paying WAYYY over list. They obviously don't care about the interest rate or the house and neighborhood they are buying, as their hearts aren't in it to live with their family for years to come.
Thoughts?
the folks you're competing against are far far likelier moving here from elsewhere to buy a home than they are investors.
Hedge funds have been buying up a lot of homes around the country in some of the really hot markets. It's crazy what's going on. Many people are getting priced out of buying a home and that's unfortunate. Our home value has gone way up in the seven years we have been here. I was very surprised by that.
As for the Russia / Ukraine issue, we don't really trade with Russia but Europe does! Many of the European countries rely on Russian gas and oil for their energy needs. Thats why they don't want them sanctioned out of the international banking system. If that happens, Russia can't sell their oil / gas to them and we have no way to produce enough to fill that gap. If this thing spirals out of control we are going to have big problems here. Buckle up, it's going to be a rough ride.
we'd have to find out from Redfin then how they determine that 1 in 4 homes are going to investors in Raleigh.
"Entity vs Individual"?
Per the source article: "any buyer whose name includes at least one of the following keywords: LLC, Inc, Trust, Corp, Homes. We also define an investor as any buyer whose ownership code on a purchasing deed includes at least one of the following keywords: association, corporate trustee, company, joint venture, corporate trust. This data may include purchases made through family trusts for personal use."
This is a better definition than some of the others I've seen. They do note that family trusts are swept into their definition; these are used by some for estate tax planning purposes, but wouldn't seem to be a huge factor outside the senior-housing market.
Citing "all-cash offers" is meaningless in an era when (a) a large share of buyers are equity-rich from either a move-down sale or a relocation from a pricier market, or (b) use "delayed financing" from banks or relatives.
What gives is that house prices increased by an average of over 30% in the triange last year. Thats enough of return on investment to attract a lot of money.
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