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Are real estate companies colluding to drive up the price of houses?
Posted on 8/7/22 at 11:34 am
Posted on 8/7/22 at 11:34 am
I hear on the news that house prices should be dropping but I'm not seeing it in my area.
It seems to be just the opposite.
Seems like more expensive houses are on the market right now.
It seems to be just the opposite.
Seems like more expensive houses are on the market right now.
15
Posted on 8/7/22 at 11:37 am to L1C4
No. People have made up some dumb conspiracy that they’re buying up homes and intentionally not selling them. When truth is that in the places they’re often referring to, vacancy rates are historically low.
In other words, they’re buying real estate where housing is low. No need to conspire. The local governments and some of the local homeowners are already doing that but preventing more housing when it’s needed.
In other words, they’re buying real estate where housing is low. No need to conspire. The local governments and some of the local homeowners are already doing that but preventing more housing when it’s needed.
This post was edited on 8/7/22 at 11:41 am
Posted on 8/7/22 at 11:43 am to L1C4
Pension funds investing in homes today is something to worry about, but for the firms building only Single family rentals is not a big issue. Cities not zoning enough residential and permitting is one of the least talked about issues
Posted on 8/7/22 at 12:05 pm to L1C4
No.
There are three things which determine property values:
1. Location
2. Location
3. Location
When someone goes to sell a home, the value is generally derived from comps (recently sold properties of similar size in the same or similar areas, with other factors potentially changing that value).
This means valuation is extremely local as that value is based largely on demand for a for a finite resource in a specific location (the old adage of "they aren't making any more land" comes into play in such areas). For example, my home here in BR is valued far more than if that same home were on the same sized lot in the middle of Grant parish (between Dry Prong and Pollock, for example).
There are simply too many realtors and independent real estate appraisers for there to be enough collusion to create enough fraud to impact the market.
It takes a while for rate changes to filter throughout the country. Wait til December then compare what properties are selling for (per square foot) versus what they were selling for last December (and, importantly, how many properties are selling).
There are three things which determine property values:
1. Location
2. Location
3. Location
When someone goes to sell a home, the value is generally derived from comps (recently sold properties of similar size in the same or similar areas, with other factors potentially changing that value).
This means valuation is extremely local as that value is based largely on demand for a for a finite resource in a specific location (the old adage of "they aren't making any more land" comes into play in such areas). For example, my home here in BR is valued far more than if that same home were on the same sized lot in the middle of Grant parish (between Dry Prong and Pollock, for example).
There are simply too many realtors and independent real estate appraisers for there to be enough collusion to create enough fraud to impact the market.
It takes a while for rate changes to filter throughout the country. Wait til December then compare what properties are selling for (per square foot) versus what they were selling for last December (and, importantly, how many properties are selling).
This post was edited on 8/7/22 at 12:39 pm
Posted on 8/7/22 at 12:12 pm to L1C4
Real estate is like politics. It can be very local. That sounds like a no shite statement but it’s worth mentioning.
Where I am inventory is starting to build. In general, the days of every properly priced house going under contract in 48 hours is gone for now. Prices will at least stall and possibly drop here (BR metro area). If it drops I doubt we see anything crazy unless rates skyrocket and a few other things happen.
Where I am inventory is starting to build. In general, the days of every properly priced house going under contract in 48 hours is gone for now. Prices will at least stall and possibly drop here (BR metro area). If it drops I doubt we see anything crazy unless rates skyrocket and a few other things happen.
Posted on 8/7/22 at 12:15 pm to L1C4
I am also in Louisville. Currently in Middletown area. Prices in our neighborhood have sky rocketed last few years. It does look like homes are started to sit on the market for much longer though
This post was edited on 8/7/22 at 12:16 pm
Posted on 8/7/22 at 12:33 pm to L1C4
quote:
Are real estate companies colluding to drive up the price of houses?
That could never happen in America! (right)
Posted on 8/7/22 at 12:33 pm to L1C4
(no message)
This post was edited on 8/7/22 at 12:50 pm
Posted on 8/7/22 at 12:45 pm to L1C4
I’m interested in the mechanism where you think this is possible.
Posted on 8/7/22 at 1:03 pm to L1C4
No.
Every house I have ever listed, I got more for it than the agent suggested I sell it for.
The agents want a quick sale.
Every house I have ever listed, I got more for it than the agent suggested I sell it for.
The agents want a quick sale.
Posted on 8/7/22 at 1:10 pm to L1C4
Supply and demand. They don’t have to ‘collude’. We don’t have enough housing.
Posted on 8/7/22 at 2:40 pm to ronricks
quote:
We don’t have enough housing.
We’re several years away from adequate inventory.
Posted on 8/7/22 at 2:56 pm to L1C4
One out of every four homes purchased over the past three or so years have been by investment firms.
Posted on 8/7/22 at 3:08 pm to GREENHEAD22
Posted on 8/7/22 at 3:50 pm to GREENHEAD22
quote:
One out of every four homes purchased over the past three or so years have been by investment firms.
Link
Posted on 8/7/22 at 3:59 pm to vegas-tiger
That’s not what OP is suggesting. That’s an investment company buying homes.
Posted on 8/7/22 at 7:54 pm to L1C4
Idiots need to stop overpaying and it will correct
Posted on 8/8/22 at 12:16 am to boogiewoogie1978
quote:
Idiots need to stop overpaying and it will correct
Because of careers and other factors some people don’t have control over when they can buy or sell a house. What is “overpaying” , the market is determining what a house is worth.
Posted on 8/8/22 at 6:10 am to Guntoter1
quote:
The agents want a quick sale.
A guy I know put his house on the market and it sold in 1 day - I told him that he didn't ask enough - the realtor was happy, I'm sure. Got his 6% with almost zero effort.
Posted on 8/8/22 at 6:39 am to Atlas_Shrugged
quote:
Yeah we have houses for sale in my neighborhood with the listing agent being Berkshire Hathaway…never seen that before
Agent… or broker?
Because there’s been Berkshire Hathaway brokerage for a while now.
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