[quote=SD Realtor]CAR the flippers have little if no impact whatsoever on the pricing. Don’t take it from me. Go to any of the sites, fidelity or priority posting and pick any random day of auction. Then look at the number of homes scheduled for sale on that day and then look at the number actually sold. Today for instance there were originally over 350 homes downtown. As of now there are maybe 40 that are even for sale, all the rest are pushed out. By the end of the day maybe of those 40, I bet more then half will be pushed out. Thus out of those 20 left maybe 10 will be bid on.
Honestly the impact of the flippers is much less then people make them out to be. The impact of the banks behavior with the loan mods DWARFS the flipper impact with respect to available inventory.[/quote]
Yes, agreed.
However, in an inventory-constrained market (which this one is right now), any additional, inorganic demand is going to affect prices.
I’m also more sensitive to it because I’m looking for exactly what most flippers want: old, run-down hoses in good neighborhoods that need a lot of work, and are selling at a discount.
What flippers are willing to pay so they can “granitize” the place and sell to unsuspecting fools with no cash is much higher than what real buyers are willing to pay so they can do basic repairs/upgrades (no granite) and **live in the home** over time.
It’s not just the flippers…it’s the clueless buyers of these flips, with their 3.5% FHA loans (and seller concessions!) who are mesmerized by granite and stainless steel-wrapped junk appliances, who are screwing up this market.
I just wish we could compete with others who have as much to lose as we do.
