Rise in House Prices

[canker2323]

This is interesting. I think I read somewhere that some institutional investors were doing the same thing with farmland a couple years ago.

Behind the Rise in House Prices, Wall Street Buyers - NYTimes.com

Blackstone, which helped define a period of Wall Street hyperwealth, has bought some 26,000 homes in nine states. Colony Capital, a Los Angeles-based investment firm, is spending $250 million each month and already owns 10,000 properties. With little fanfare, these and other financial companies have become significant landlords on Main Street. Most of the firms are renting out the homes, with the possibility of unloading them at a profit when prices rise far enough.
...
While these investors have not touched many healthy real estate markets, they are among the biggest buyers in struggling areas of the country where housing prices have been increasing the fastest. Those gains, in turn, have been at the leading edge of rising home prices nationwide.
...
Mr. Martin, 58, has made offers on 15 houses over the last year. Last Wednesday, he received his latest rejection. On most of the houses, Mr. Martin has lost out to investors offering all cash.

 

[intrepid27]

Last month I talked to a guy whose wife processes mortgages at Wells Fargo. She said that there were lots of houses starting to move but is groups like this buying them. Not individuals who planning on living in them. With rising gas and food costs and sluggish job growth it takes a lot of balls to spec on houses in this economy. IMHO

 

[NickTheGreat]

Makes sense. Long term there's some money to be made there

 

[erikbj]

Interst rates are starting to move up and I don't think I want to be speculating on homes today. Prices went up because you could get a 3.5% 30 yr mortgage.

 

[wartknight]

There's a ton of people right now now who have credit issues and can't qualify for a mortgage or got burned by the last crash that don't want to buy and because of that, at least in Central IA, the rental market is on fire. Over 2 years I've raised my rates around $300/month in Ankeny and I know others who have gone up $500. The Rent by the week places are packed and have gone up $100/week over the last 2 years.

 

[2forISU]

I have been investing in homes but have been running in to stiff competition. Once a foreclosure comes on the market it has 3-4 offers within 24 hours. Cash is king but every investor has cash too.

 

[Rabbuk]

A lot of companies here are buying up properties and renting them out, I assume till value goes up more.

 

[canker2323]

There's a ton of people right now now who have credit issues and can't qualify for a mortgage or got burned by the last crash that don't want to buy and because of that, at least in Central IA, the rental market is on fire. Over 2 years I've raised my rates around $300/month in Ankeny and I know others who have gone up $500. The Rent by the week places are packed and have gone up $100/week over the last 2 years.

With bond yields so low, and rents so high, I think these inst investors will keep on buying up rentals.

 

[chadly82]

I have been investing in homes but have been running in to stiff competition. Once a foreclosure comes on the market it has 3-4 offers within 24 hours. Cash is king but every investor has cash too.

Absolutely, i have a guy in my office and he has 8 rentals now...all free and clear though because he paid anywhere from 25k-40k for all of them and had good contacts for rehabbing them and they are all income producing consistantly. Plenty of sheriff sales out there for opportunity.

 

[bringmagicback]

where and how do you find out about sheriff sales?

 

[bringmagicback]

In my home town there are typically 100 houses at any given time for sale. Right now (and for the past few months) there have been about 40. The second a nice house goes up for sale, it's sold. Litterally before the listing hits the internet. Impossible to buy a decent house.

 

[chadly82]

If you go to the assessors site you can always look up foreclosures and auction date....im going to start attending with him to see what he's looking for because my dad is going to finance a line of credit for me to use to do some flipping too. My buddy flipped 3 to start profiting about 35K there...then paid cash for properties and the updates and found rentors. Buys 2 houses a year to flip or rent now.

 

[Mr Janny]

In my home town there are typically 100 houses at any given time for sale. Right now (and for the past few months) there have been about 40. The second a nice house goes up for sale, it's sold. Litterally before the listing hits the internet. Impossible to buy a decent house.

I was actually just reading an article on this. They're called pocket listings. Realtors hold back on listing attractive houses to the public, instead presenting them to known interested parties on a case by case basis. Apparently, the practice is particularly popular on the west coast. I suppose it adds a feeling of "exclusivity" to the buyer, making them more likely to buy.

We purchased a home in Ames about a month ago, and since then I've been periodically checking listings to see what's out there. Very few new ones have hit the market, and the ones that have are gone in no time.

 

[chadly82]

I was actually just reading an article on this. They're called pocket listings. Realtors hold back on listing attractive houses to the public, instead presenting them to known interested parties on a case by case basis. Apparently, the practice is particularly popular on the west coast. I suppose it adds a feeling of "exclusivity" to the buyer, making them more likely to buy.

We purchased a home in Ames about a month ago, and since then I've been periodically checking listings to see what's out there. Very few new ones have hit the market, and the ones that have are gone in no time.

There is a lot you can do depending on your cashflow. You can make contacts with realtors that know a house is looking for short sale, you can visit the sheriffs site for each county etc....you dont have to have a ton of liquid by any means. My buddy that owns 8 or 9 rentals as of now buys each one for pretty low...his last one was 26k and put 22 into it through his investor and just sold it for 98500. Took 4 months to complete the process, but his profit all said and done 31K. Its a complicated process though at times.

 

[bringmagicback]

I was actually just reading an article on this. They're called pocket listings. Realtors hold back on listing attractive houses to the public, instead presenting them to known interested parties on a case by case basis. Apparently, the practice is particularly popular on the west coast. I suppose it adds a feeling of "exclusivity" to the buyer, making them more likely to buy.

We purchased a home in Ames about a month ago, and since then I've been periodically checking listings to see what's out there. Very few new ones have hit the market, and the ones that have are gone in no time.

Right, and that just happend to me not to long ago on 2 different houses (I think). I emailed realtor on a house, he doesnt get back to me for 4 days. Gets back to me and says, sorry offer just accepted this morning.

The other one, call and call a different realtor, never answer, week later, oops sorry just sold!

Has to be Illegal, but in small towns you dont have much of a choice.

 

[chadly82]

Right, and that just happend to me not to long ago on 2 different houses (I think). I emailed realtor on a house, he doesnt get back to me for 4 days. Gets back to me and says, sorry offer just accepted this morning.

The other one, call and call a different realtor, never answer, week later, oops sorry just sold!

Has to be Illegal, but in small towns you dont have much of a choice.

There is a lot of stuff still going on that just hasnt been caught up with yet.....if theres some illegal stuff going on or unethical even....itll be done soon. FBI is working about 2 years at a time on a lot of this stuff.

 

[bringmagicback]

anyone know how to find sherriff sale info btw since it was brought up?

 

[chadly82]

theres one for each county depending where you live....some counties may or may not have many of them so you might night have a site you can go to. For example..Polk county has plenty.
Sales Web

 

[CarlHungus]

Ugh. Hopefully the prices around here stay down (yes I know I'm being selfish and this would not be good for people looking to sell) and interest rates don't creep up too much since I'm hoping to buy a home by summer time next year

 

[Jambalaya]

There's a ton of people right now now who have credit issues and can't qualify for a mortgage or got burned by the last crash that don't want to buy and because of that, at least in Central IA, the rental market is on fire. Over 2 years I've raised my rates around $300/month in Ankeny and I know others who have gone up $500. The Rent by the week places are packed and have gone up $100/week over the last 2 years.

A ton of people buy a home and have 2-3 car payments and live WAY ABOVE their means.............and then tack on 40K in new credit card debt and then blame the economy or some other factor. Life is about CHOICES... if you can't afford it---do without. like the suburban families with all the debt above---yet insist on taking the family to Disneyworld (and spend another $5,000-6,000) because all of the neighboring households do it! DUHHHH sorry, don't feel sorry for you