A very fascinating article by CNBC's Diana Olick explaining how the rise in prices could hurt the recovery due to investors buying up the inventory of homes thus eventually hurting the return in investments. Another and more important side effect is that home prices are going up faster than income, which could push out owner-occupants buyers away from the market.
This is especially the case in Corona and Inland Empire where it took the biggest dip. With slim inventories and many cash investors buying up homes to rent, it's possible that once margins get thin, you will see a decrease in sales which could put a halt on prices going up in the near future.
This is especially the case in Corona and Inland Empire where it took the biggest dip. With slim inventories and many cash investors buying up homes to rent, it's possible that once margins get thin, you will see a decrease in sales which could put a halt on prices going up in the near future.
ARTICLE
The reason is that the rise in prices is mainly due to investors, mostly large hedge funds, that have been swooping into the most distressed markets and inhaling properties as fast as their plentiful cash will allow. They are....
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