It's baaaaack!
It's been a while, but the house flipping chatter is back. I overheard several people at the gym yesterday talking about how they've been buying and flipping condos here in NYC or, looking to get into the flipping game.
I don't know if this is a top in the real estate market, but it sure is starting to look like 2006 again in some places.
I don't know if this is a top in the real estate market, but it sure is starting to look like 2006 again in some places.
2 comments:
Very alive and well in Houston. The paid infomercials are on every other channel.
The financing is coming from middle tier? It is driving up prices but there is no subprime development perhaps.
So the sustainability is a function of wages and employment and growth.
The realtors will push prices up.
The employers will push wages down. Austerity will drain liquidity from the private sector.
There is no subprime ocean feeding the derivative vortex.
However the current low interest rates will act like a subprime lure effect and then we'll see some catastrophic effect somewhere ?
It all depends on the collateral the banks will lend how much against. I would expect that at this stage of the cycle banks would be shy and the haircut on collateral would be quite a bit more substantial. But it could work in higher-end properties where people in that class are flush, like young traders on Wall Street buying million dollar condos as "starter pads." In this sense, flipping would be a kind of arbitrage for those willing to commit time and energy to finding deals before others do. This is always happening but when it's noticeable, that indicates a market heating up.
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