Dr. Housing Bubble — The Wall Street fascination with rentals

The flood of investors into the real estate market is no tiny trend. This has been a big force in the market for a few years now. Someone in the real estate industry commented in an e-mail that FHA buyers are viewed as the new subprime when it comes to the hierarchy of buying a new home. They didn’t mean this in a derogatory sense but meant that if they have an all cash offer with a quick close versus a loan with high leverage, chances are the all cash offer will win out. This is simply the case in this low supply market where the last thing people in the industry want to do is extend the process trying to close on a property only to see it fall out of escrow. With an all cash close, you can get the deal done rather quickly. We’ve never seen this level of institutional buying in the housing market for this prolonged of a period. What are the implications of Wall Street’s current fascination with rentals?

Locking up supply for years to come

Dr. Housing Bubble
The Wall Street fascination with rentals: Is the big rush with investor buying locking up the supply of real estate? How retail buyers are priced out of the equation