re: Homebuilders cancelling contracts to sell for more on market

Posted on 3/28/22 at 4:03 pm to Chucktown_Badger

Posted by Dire Wolf

bawcomville

Member since Sep 2008

36756 posts

Posted on 3/28/22 at 4:03 pm to Chucktown_Badger

quote:

Let's see a link then. What I posted was supported by a bunch of other articles too.

Here is where he got the black rock story

LINK

quote:
“You now have permanent capital competing with a young couple trying to buy a house,” said John Burns, whose eponymous real estate consulting firm estimates that in many of the nation’s top markets, roughly one in every five houses sold is bought by someone who never moves in. “That’s going to make U.S. housing permanently more expensive,” he said. The consulting firm found Houston to be a favorite haunt of investors who have lately accounted for 24% of home purchases there. Investors’ slice of the housing market grows—as it does in other boomtowns, such as Miami, Phoenix and Las Vegas—among properties priced below $300,000 and in decent school districts. “Limited housing supply, low rates, a global reach for yield, and what we’re calling the institutionalization of real-estate investors has set the stage for another speculative investor-driven home price bubble,” the firm concluded

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Posted by Chucktown_Badger

The banks of the Ashley River

Member since May 2013

31339 posts

Posted on 3/28/22 at 4:16 pm to Dire Wolf

quote:
Here is where he got the black rock story

LINK

Your problem is that you're all basing your outrage on Burns' misleading report.

quote:
Many of the articles claiming that institutional investors are driving up single-family home prices and are competing with average homebuyers rely on research by John Burns Real Estate Consulting. One even claimed that investors are “a main cause” for the hot market, which is not what the John Burns research details. In fact, the report explicitly states that the US is “not in an investor-induced home price bubble today.”

quote:
John Burns looked at houses where the property tax records are going to a different address than the home itself, and Rick Palacios, director of research at the firm, explained that it’s not possible to tell from this data what component of these sales comes directly from institutional investors.

quote:
Marketplace’s lead anecdote in a story titled “Institutional investors are still competition for homebuyers” is about a first-time buyer who bid on six houses and was outbid by all-cash offers. But all cash doesn’t necessarily mean institutional investors. With mortgage rates at record lows, some people are using all-cash offers to win bidding wars, which have exploded in frequency over the past year.