The title of this post was previously reserved for politicians but now it seems more appropriate to real estate investors. Apparently investor speculation in DC [WaPo] was more rampant than we gave fair credit for. [This was a front page WaPo story on Saturday]
Not just condominiums, but also townhouses and single-family houses, were snapped up by investors using no-money-down financing and non-traditional loans. They helped send prices soaring at unprecedented rates.
The investor element of the housing boom [cnbc] appears to be the segment that is suffering right now.
In Florida, the oversupply of rental to condo conversions are causing the landlords to have second thoughts [SoFl Bus]. Known as the “condo conversion reversion,” many condos are reverting back to rentals.
Is this unexpected? Not really. You can’t pile on thousands and thousand of units in a market and expect prices to rise indefinitely.
Ever made Hollandaise sauce? You can keep adding butter but risk having the emulsion break and being forced to start over. [sorry, will try to keep the cooking analogies to a minimum -ed]