Bing Guan / Bloomberg via Getty ImagesThe lack of supply of single-family homes has pushed up housing prices in many markets across the country — but would-be homebuyers are finding they are being outbid not just by other home seekers, but by hedge funds.
“If you're a first time homebuyer and you're depending on a mortgage that takes two months to close and you're competing against someone who’s making a cash offer, you're at a disadvantage right off the bat,” Kaul said. That supply crunch is unlikely to ease in the near future. Although housing starts rose more than expected in June, building permits — which foreshadow starts — surprised economists by falling roughly 5 percent, a steeper drop than anticipated.
“The appraisal is one of the controls we have on markets overheating above their value. The reason we have appraisals is to ensure the market isn't overbidding homes beyond what they're worth,” Dworkin said. “All these old neighbors are dying off or going to homes. Their children aren't here in the state any more and they sell the house for top dollar,” he said. “They sell to investors, they don't sell to people looking to live there,” he said.
This may turn into the Ultra-prime rate crisis rather than sub prime.
Jim Kramer runs one of the largest hedge funds in the USA. He loves real estate 😊🏴🇺🇸
Bidding? That’s some dark ages bs way to buy a house.
Whole economic system is a fvcking joke
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