Home › Forums › Closed Forums › Buying and Selling RE › HOUSING: Feds suspend anti-flipping rule
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January 16, 2010 at 6:13 PM #503595January 16, 2010 at 6:31 PM #502713anParticipant
[quote=patb]flippers take out of the market fixers.
cosmetically ugly propeties that an owner
can fix up over a decade.[/quote]
I totally agree with this statement. They remove cosmetic fixer from the market and add decent move in ready homes.January 16, 2010 at 6:31 PM #502862anParticipant[quote=patb]flippers take out of the market fixers.
cosmetically ugly propeties that an owner
can fix up over a decade.[/quote]
I totally agree with this statement. They remove cosmetic fixer from the market and add decent move in ready homes.January 16, 2010 at 6:31 PM #503264anParticipant[quote=patb]flippers take out of the market fixers.
cosmetically ugly propeties that an owner
can fix up over a decade.[/quote]
I totally agree with this statement. They remove cosmetic fixer from the market and add decent move in ready homes.January 16, 2010 at 6:31 PM #503355anParticipant[quote=patb]flippers take out of the market fixers.
cosmetically ugly propeties that an owner
can fix up over a decade.[/quote]
I totally agree with this statement. They remove cosmetic fixer from the market and add decent move in ready homes.January 16, 2010 at 6:31 PM #503605anParticipant[quote=patb]flippers take out of the market fixers.
cosmetically ugly propeties that an owner
can fix up over a decade.[/quote]
I totally agree with this statement. They remove cosmetic fixer from the market and add decent move in ready homes.January 16, 2010 at 6:32 PM #502708anParticipantYes, 10x more flippers = 10x the existing demand from flippers but it would also = 10x the existing supply from the flippers too. Flippers do not buy houses and destroy them. They either fix it up or just put it right back on the market.
You forget that loose lending also allow people who shouldn’t be buying houses at all to buy. Those are demand that wouldn’t have existed. Renters buying starter houses, people who would have bought starter houses buy move up houses, etc. It just add a lot more demand out there. Supply is fixed except for new construction. Once again, I don’t see flipper removing supply, they just change the type of supply but the house doesn’t go anywhere.
Of course speculation and easy money are linked, but I say easy money allow people to speculate, not the other way around. So, the root cause is not speculation, the root cause is easy money. This all comes back to your statement:
[quote=CA renter]
Though some of us think flipping is a big part of the problem, it doesn’t mean we’re not informed.[/quote]You can’t lay food in front of hungry people and tell them they can’t eat. Human are greedy creature. It’s just the way it is. That’s why communism doesn’t work even though it’s perfect idealistically. Flipping doesn’t cause the bubble, easy money did. You just said so yourself, easy money is now starting again and you’re expecting speculators to increase. Which mean speculation was there when easy money wasn’t there.
January 16, 2010 at 6:32 PM #502857anParticipantYes, 10x more flippers = 10x the existing demand from flippers but it would also = 10x the existing supply from the flippers too. Flippers do not buy houses and destroy them. They either fix it up or just put it right back on the market.
You forget that loose lending also allow people who shouldn’t be buying houses at all to buy. Those are demand that wouldn’t have existed. Renters buying starter houses, people who would have bought starter houses buy move up houses, etc. It just add a lot more demand out there. Supply is fixed except for new construction. Once again, I don’t see flipper removing supply, they just change the type of supply but the house doesn’t go anywhere.
Of course speculation and easy money are linked, but I say easy money allow people to speculate, not the other way around. So, the root cause is not speculation, the root cause is easy money. This all comes back to your statement:
[quote=CA renter]
Though some of us think flipping is a big part of the problem, it doesn’t mean we’re not informed.[/quote]You can’t lay food in front of hungry people and tell them they can’t eat. Human are greedy creature. It’s just the way it is. That’s why communism doesn’t work even though it’s perfect idealistically. Flipping doesn’t cause the bubble, easy money did. You just said so yourself, easy money is now starting again and you’re expecting speculators to increase. Which mean speculation was there when easy money wasn’t there.
January 16, 2010 at 6:32 PM #503259anParticipantYes, 10x more flippers = 10x the existing demand from flippers but it would also = 10x the existing supply from the flippers too. Flippers do not buy houses and destroy them. They either fix it up or just put it right back on the market.
You forget that loose lending also allow people who shouldn’t be buying houses at all to buy. Those are demand that wouldn’t have existed. Renters buying starter houses, people who would have bought starter houses buy move up houses, etc. It just add a lot more demand out there. Supply is fixed except for new construction. Once again, I don’t see flipper removing supply, they just change the type of supply but the house doesn’t go anywhere.
Of course speculation and easy money are linked, but I say easy money allow people to speculate, not the other way around. So, the root cause is not speculation, the root cause is easy money. This all comes back to your statement:
[quote=CA renter]
Though some of us think flipping is a big part of the problem, it doesn’t mean we’re not informed.[/quote]You can’t lay food in front of hungry people and tell them they can’t eat. Human are greedy creature. It’s just the way it is. That’s why communism doesn’t work even though it’s perfect idealistically. Flipping doesn’t cause the bubble, easy money did. You just said so yourself, easy money is now starting again and you’re expecting speculators to increase. Which mean speculation was there when easy money wasn’t there.
January 16, 2010 at 6:32 PM #503350anParticipantYes, 10x more flippers = 10x the existing demand from flippers but it would also = 10x the existing supply from the flippers too. Flippers do not buy houses and destroy them. They either fix it up or just put it right back on the market.
You forget that loose lending also allow people who shouldn’t be buying houses at all to buy. Those are demand that wouldn’t have existed. Renters buying starter houses, people who would have bought starter houses buy move up houses, etc. It just add a lot more demand out there. Supply is fixed except for new construction. Once again, I don’t see flipper removing supply, they just change the type of supply but the house doesn’t go anywhere.
Of course speculation and easy money are linked, but I say easy money allow people to speculate, not the other way around. So, the root cause is not speculation, the root cause is easy money. This all comes back to your statement:
[quote=CA renter]
Though some of us think flipping is a big part of the problem, it doesn’t mean we’re not informed.[/quote]You can’t lay food in front of hungry people and tell them they can’t eat. Human are greedy creature. It’s just the way it is. That’s why communism doesn’t work even though it’s perfect idealistically. Flipping doesn’t cause the bubble, easy money did. You just said so yourself, easy money is now starting again and you’re expecting speculators to increase. Which mean speculation was there when easy money wasn’t there.
January 16, 2010 at 6:32 PM #503600anParticipantYes, 10x more flippers = 10x the existing demand from flippers but it would also = 10x the existing supply from the flippers too. Flippers do not buy houses and destroy them. They either fix it up or just put it right back on the market.
You forget that loose lending also allow people who shouldn’t be buying houses at all to buy. Those are demand that wouldn’t have existed. Renters buying starter houses, people who would have bought starter houses buy move up houses, etc. It just add a lot more demand out there. Supply is fixed except for new construction. Once again, I don’t see flipper removing supply, they just change the type of supply but the house doesn’t go anywhere.
Of course speculation and easy money are linked, but I say easy money allow people to speculate, not the other way around. So, the root cause is not speculation, the root cause is easy money. This all comes back to your statement:
[quote=CA renter]
Though some of us think flipping is a big part of the problem, it doesn’t mean we’re not informed.[/quote]You can’t lay food in front of hungry people and tell them they can’t eat. Human are greedy creature. It’s just the way it is. That’s why communism doesn’t work even though it’s perfect idealistically. Flipping doesn’t cause the bubble, easy money did. You just said so yourself, easy money is now starting again and you’re expecting speculators to increase. Which mean speculation was there when easy money wasn’t there.
January 16, 2010 at 7:25 PM #502718CA renterParticipantFor some reason, it seems I’m not able to communicate what I’m trying to communicate.
Once more, flippers/speculators do not always put their flips/investments on the market immediately after buying them (zero days). If there were no time lags, you’d have a point. You’re neglecting the time lags (marketing, fixing up, escrow, intentionally holding things off the market if the market slows, etc.). Three months can make a big difference in the housing market, and it influences the behavior of all other buyers.
Housing is not a liquid market, and if the number of new flippers/speculators overwhelms the new supply, they become the market — temporarily (weeks, months, years) pushing prices up until they collectively release the inventory onto the market.
If one flipper is selling while two more are buying, and this activity continues over a period of time, speculators are absolutely going to affect the supply/demand ratios and greatly affect pricing. Additionally, it’s very common to see flippers selling to other flippers/speculators. You can have a “false” supply/demand ratio in the market for a long, long time. I don’t know how else to explain it.
January 16, 2010 at 7:25 PM #502867CA renterParticipantFor some reason, it seems I’m not able to communicate what I’m trying to communicate.
Once more, flippers/speculators do not always put their flips/investments on the market immediately after buying them (zero days). If there were no time lags, you’d have a point. You’re neglecting the time lags (marketing, fixing up, escrow, intentionally holding things off the market if the market slows, etc.). Three months can make a big difference in the housing market, and it influences the behavior of all other buyers.
Housing is not a liquid market, and if the number of new flippers/speculators overwhelms the new supply, they become the market — temporarily (weeks, months, years) pushing prices up until they collectively release the inventory onto the market.
If one flipper is selling while two more are buying, and this activity continues over a period of time, speculators are absolutely going to affect the supply/demand ratios and greatly affect pricing. Additionally, it’s very common to see flippers selling to other flippers/speculators. You can have a “false” supply/demand ratio in the market for a long, long time. I don’t know how else to explain it.
January 16, 2010 at 7:25 PM #503269CA renterParticipantFor some reason, it seems I’m not able to communicate what I’m trying to communicate.
Once more, flippers/speculators do not always put their flips/investments on the market immediately after buying them (zero days). If there were no time lags, you’d have a point. You’re neglecting the time lags (marketing, fixing up, escrow, intentionally holding things off the market if the market slows, etc.). Three months can make a big difference in the housing market, and it influences the behavior of all other buyers.
Housing is not a liquid market, and if the number of new flippers/speculators overwhelms the new supply, they become the market — temporarily (weeks, months, years) pushing prices up until they collectively release the inventory onto the market.
If one flipper is selling while two more are buying, and this activity continues over a period of time, speculators are absolutely going to affect the supply/demand ratios and greatly affect pricing. Additionally, it’s very common to see flippers selling to other flippers/speculators. You can have a “false” supply/demand ratio in the market for a long, long time. I don’t know how else to explain it.
January 16, 2010 at 7:25 PM #503360CA renterParticipantFor some reason, it seems I’m not able to communicate what I’m trying to communicate.
Once more, flippers/speculators do not always put their flips/investments on the market immediately after buying them (zero days). If there were no time lags, you’d have a point. You’re neglecting the time lags (marketing, fixing up, escrow, intentionally holding things off the market if the market slows, etc.). Three months can make a big difference in the housing market, and it influences the behavior of all other buyers.
Housing is not a liquid market, and if the number of new flippers/speculators overwhelms the new supply, they become the market — temporarily (weeks, months, years) pushing prices up until they collectively release the inventory onto the market.
If one flipper is selling while two more are buying, and this activity continues over a period of time, speculators are absolutely going to affect the supply/demand ratios and greatly affect pricing. Additionally, it’s very common to see flippers selling to other flippers/speculators. You can have a “false” supply/demand ratio in the market for a long, long time. I don’t know how else to explain it.
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