Great article MC and explains well the conditions of the current real estate market. You would think that these big boy institutional investors would understand the short term bubble they have created going in (short squeeze). Good investors have an exit strategy and it doesn’t seem like these guys do.
I read that American Homes 4 Rent (AH4R) is having big problems managing the properties they have purchased and complaints are high. The BBB has given them a F rating. In my area they are running ads for licensed leasing agents; but it seems they are not doing well paying those they hire.
I thought this article explained well the reasoning to purchase existing homes as compared to building new. I always understood that new construction is a sign of a stronger economy. This is evidence that this so called housing recovery if fake.
With no mortgages as these institutional investors are paying cash, when it crashes will they dump their inventory quickly? Or, do they think they can be like the banks and control the market by holding inventory and selling below market value? I know their cash is tied to Wall Street in whatever way.
I agree that a real estate recovery, and/or any growth lol, is tied to the economy and a strong job market. Well, the economy is in the crapper, still.
This is a good read and I learned some stuff. I just wish this would cycle through quickly as local inventory is dreadfully low, especially FSBO.