An interesting article by CNBC about the good and bad of more investors buying distress property.
While it may appear to be another sign of the Real Estate market turning around, there are concerns that banks selling bulk REOs (Foreclosed Homes) to big money investors, are cutting out small investors and could bring more volatility to the current housing recovery.
Be interesting to see how this play out. ** For full article click here.
"The number of homes sold to investors more than doubled last year, as rising rents and low-priced distressed properties fueled demand. Investors, half of them using no mortgage, bought 1.23 million homes in 2011, a 65 percent jump from 2010, according to the National Association of Realtors." **
While it may appear to be another sign of the Real Estate market turning around, there are concerns that banks selling bulk REOs (Foreclosed Homes) to big money investors, are cutting out small investors and could bring more volatility to the current housing recovery.
According to mortgage analyst Mark Hanson, “They are fickle and volatile. They will go away on the slightest of conditions changes. They also won't chase prices higher or buy new homes from builders. Lastly, without the heavy flow of distressed supply, there is no U.S. housing market recovery. Distressed sales ARE the market,” says Hanson. **
Be interesting to see how this play out. ** For full article click here.
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