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Investors Cool On US Housing With Market At Crossroad
Investors are inclined to an increasingly grim view of the prospects for the US housing market.
I've discussed Redfin's dataset on investor participation previously. Suffice to say investors piled into the pandemic housing bubble with readily apparent gusto.
On the eve of the most aggressive Fed tightening cycle since Paul Volcker, the investor share of the market, as defined by the percentage of home sales to institutions or businesses purchasing residential real estate, reached 20%, accordin
One of the greatest financial cons of all time is that houses are one of the best investments one can make. Yeah, everyone seems to know a flipper or someone who made a bunch by buying in the 1970s and selling last year. Fine, but houses are the most illiquid major asset one can buy. Investors buying at the top may never get out with a profit. I’ve made plenty of money in the bond market and have a nice unrealized gain in stocks but I’ve owned five houses and considering the cost of new roofs, new systems, landscaping, etc, I’ve barely broken even on this lot. All the houses but one were new when purchased and I still got hosed. I’ve got a PhD in R/E, written a ground-breaking text on the subject and still I only know one person who’s had much long-term success buying this stuff. People used to asking me what my secret to good real estate investing. My reply has always been by IG bonds.