At one point in early 2013 roughly 33 percent of all home sales in California were ending up in the hands of investors. Keep in mind this is occurring at a time when inventory is very low. Inventory is also low for the following reasons: 1. Negative equity. Still close to 2 million of California homeowners are underwater or slightly above water (i.e., 5 percent equity) 2. Investor buying – and holding. This massive group has been dominant since 2008 and shifts the normal ebb and flow of buying and sales 3. Banks slowing down foreclose process. Banks systematically leaking properties out to stunt the market and drive prices up
Posted on: Thu, 23 Jan 2014 00:13:07 +0000