Home prices have risen year over year for seven consecutive months, which hasn’t happened since 2006, said Walter Molony, a spokesman for the National Association of Realtors.
Oh hey, that's reassuring. What happened in 2006? Not that it matters for somebody who has invested $1.5 billion in residential housing this year. What part of 800 lb gorilla are the regulators not seeing? They aren't paying retail. They aren't going through the MLS. They aren't providing the banks best value.
Now think of the consequences. What would happen to automobile leasing prices if you couldn't buy a car anymore? This is scary stuff. And wait until Blackstone "negotiates" with municipalities for lower taxes and the like.
4 comments:
"They aren't providing the banks best value."
Actually, this MAY be the best value the banks can get for the more distressed properties...and remember, there's little in this market that price cannot fix...
Cinco, this lowers the velocity of money even further. Think of all the people skimming a little off each individual home sale, they spend the money PDQ. Appraisers, title officers, pest inspectors, realtors, notaries.
TS: "Think of all the people skimming a little off each individual home sale, they spend the money PDQ. Appraisers, title officers, pest inspectors, realtors, notaries."
...and when that's all said and done, how much underlying "value" has been added to the economy? Has any of these increased the intrinsic value of the property?
The money stays nearer the house and gets used several times before leaking out. So yes, compared to what Blackstone is doing retail house sales are far better for the local economy unless you local economy is Antigua.
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