Bay Area

[sheriff]

The is a story in the real estate section of the Saturday SJ Mercury News containing predictions for the new year.  Most are positive, no surprise there, but the part that was most interesting to me was the number of people who talked about foreclosures being bought up in bulk up by hedge funds before they hit the market.  Maybe this is where the shadow inventory went and where it is going in some parts of the country.  I doubt that they are buying much in the bay area because of the expense but I don't know.  I am sorry for not providing the link but I was not able to find it.

[Jil]

I read the whole story. All these are good for those who bought last 3 to 4 years, but not for new buyers.

Now, It is no brainer to say "2013 is positive" when everyone in the valley knows the secret. Economists, analysts......all those real estate related people coming out now are very late gamers.

When foreclosures and short sales are gone, all the low prices are gone. Even if there is a economic fall in future, those 2008-2012 prices will not be back.

[sheriff]

I found the link to the article.  Apparently it does not show up on the website right away.

http://www.mercurynews.com/real-estate/ci_22287721/market-predictions-2013-from-our-trusted-prognost...

[donjumpsuit]

I'll wait for the "Hedge Funds" to go bankrupt or Ponzi, and then collect thier assets when they are liquidated on the market.  Until then, they can buy all the overpriced proprties they want.  

[Jil]

Just for fun, review this...

http://forums.redfin.com/t5/Los-Angeles/Where-are-those-shadow-inventory/m-p/390872#M73766

[sheriff]

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donjumpsuit wrote:

I'll wait for the "Hedge Funds" to go bankrupt or Ponzi, and then collect thier assets when they are liquidated on the market.  Until then, they can buy all the overpriced proprties they want.  

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I doubt that they are buying overpriced properties.  If anything they are getting a discount from buying large groups of properties and saving the banks marketing and selling expenses and the asset manager's time.

[BAzx]

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sheriff wrote:

I doubt that they are buying overpriced properties.  If anything they are getting a discount from buying large groups of properties and saving the banks marketing and selling expenses and the asset manager's time.

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The classic economy of scale - that's why small time investors/individuals will always get the short end of the deal during these times... 

[buyinghouse]

  Everybody but the latest buyers got a chance to overcome that, it was hard for us to compete with investors but we did it using other avenues. nowadays, with the lower inventory, it multiplies the "cash is the king" mantra ten times fold.