General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsHousing Bubble Might Be Back
A few days ago CBS News did a story on the hot housing market. In the story the reporter discussed the fact that as the housing market is improving house flippers are making a comeback (if they ever went away). Along with discussing house flippers the story discussed how hard it is becoming for regular home buyers to actually buy houses partly because house flippers are buying the houses and at times are willing to pay more for the houses than they are worth.
This CBS story is not the only story I have seen that makes me think there might be another housing bubble. I have seen at least one other story that made me think there is a housing bubble. The stories may be exaggerated, or focusing too much on one location, but for now I think there may be another housing bubble.
http://www.cbsnews.com/8301-18563_162-57587256/home-flipping-trend-returns-threatening-higher-prices/
Phentex
(16,334 posts)there was a recent story about this exact thing happening in some parts of Atlanta. There are bidding wars and it's because flippers are buying. We are now getting a letter at least once a week from either a real estate agent or a family looking to buy in our neighborhood. Houses once for rent are now being purchased.
Here we go again!
wandy
(3,539 posts)http://colorlines.com/archives/2013/05/the_dangerous_new_housing_boom.html
Do you remember in one of the clown car debates when Mitt Romney said he would just let foreclosures run their course?
xxqqqzme
(14,887 posts)were trying to help their daughter buy a house. Every one they found w/i their price range was snapped up because someone appeared w/ cash. They finally found a townhouse they liked. The husband got into a conversation w/ the owner, they hit it off and the owner said he would only sell it to their daughter because he wanted a permanent owner not a flipper.
wandy
(3,539 posts)In a depressed economy rental property becomes a hot item.
Something like the interest only loan.
It's win, win, win for the big banks.
If the economy improves they sell at a profit, even with minimal property maintenance.
If the economy continues to decline they just keep collecting rent until the property is condemned.
Either way they continue to collect rent until a more profitable opportunity arises.
reformist2
(9,841 posts)The Straight Story
(48,121 posts)So they will tell people how the market is heating up, people go out and buy, then how things suck and it crashes, buy back low prices, rinse, repeat.
unblock
(52,195 posts)Politicalboi
(15,189 posts)Last November and was able to pay cash, it was just $10,000. It needs some work, but it's sill livable to "my" standards. I have seen this bubble throughout the years, and have always been on the outside of it. It feels good not to have to worry about where I am going to live if the rents get too high. I pay a little over $400 space fee for a 3 bedroom mobile home, and I live in Ca.
Lionel Mandrake
(4,076 posts)Like stock prices, they are hard to predict. Also like stock prices, they tend to rise most of the time, but are liable to drop suddenly and catastrophically once in a while. When that happens, the bubble is said to have burst. To understand these phenomena, forget classical economics, forget any theory of cycles, and forget stochastic processes. The theories that really describe such phenomena are catastrophe theory (Rene Thom) and fractals (Benoit Mandelbrot). The main thing to remember is that such markets are unpredictable and dangerous.
PasadenaTrudy
(3,998 posts)here in SoCal for sure...Doctor Housing Bubble Blog has info for those interested.
Mosby
(16,299 posts)because it was the realtors and appraisers who drove the pricing, banks/lenders had nothing to do with that.
Now it's just a little harder to get financing.
SoCalDem
(103,856 posts)The entities that own the houses just want cash ASAP, and to be done with the houses..
Joe & Mary, who may need help with closing costs & who have only a small down payment ? their offer goes to the bottom to the pile..
A flipper with $100K in cashiers' checks? sold !
wandy
(3,539 posts)The tell is at about 9 seconds in.
Kind of makes you wonder what other misfortunes Robme, Lyan and friends would be profiting on about now...
Ya, I know Chained CPI is disgraceful, but it beats cutting out coupons.