Posted by: phillipsre | June 11, 2013

Housing Prices Up Because of Wall Street Buyers

Housing1-tmagArticle

Photo Credit: New York Times, Deal Book article

In areas all over the country housing prices seem to keep climbing. The reason for this can be explained by big Wall Street investment firms buying up distressed properties that have been hit by the mortgage crisis. A bit ironic because the big investment firms are also the reason that a lot of these homes are distressed, by providing risky mortgage financing. Now Wall Street is back in the game purchasing these homes, out-bidding other prospective buyers and renting the properties in hopes to make a profit. One concern with these big investors purchasing distressed homes for rentals, is the fact that these investors are not usually in the same city and they likely will not be taking care of the home like a resident or landlord in the same city would. Overall the rise in sales is good for the market, investors are just making it tougher for locals that actually want to purchase homes in their area. More on this can be found in this article from New York Times, Deal Book.

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