Investors Pile Into Housing, This Time as Landlords
By Nick Timiraos | The Wall Street Journal
Key Points
In Orange County, investor purchases accounted for around 22% of home sales last year, up from 11% in 2007, according to Mr. Burns, the consultant. Fewer than 3,300 homes were listed for sale last month, down from 7,200 one year ago and more than 10,600 two years ago. The decreased supply has pushed prices up by nearly 10%.
We can't find anything because investors are gobbling up everything that is affordable," said Gloria Wain, 66, of Costa Mesa, Calif., during a morning meeting with her real-estate agent. After losing out to 18 offers—mostly cash offers from investors, according to her agent—she decided to raise cash herself in an effort to compete. She plans to borrow money from her son.
Things have turned around faster than anyone anticipated," said Mr. Pintar, who first began buying properties here four years ago and now owns or manages 1,700 homes, which he rents out for between $1,000 and $3,800 a month. Here in Orange County, nearly every home listed for less than $400,000 "is being pursued by institutional investor capital," he said.
Where is the asset well it is in the house again as people must have shelter , You cannot have an increase in price without an increase in currency so the market price can increase. When prices go up you have to have an increase in wages so people can pay the price. Yet it is claimed that wage increase cause prices to go up. One can not help but wonder if the 22% investor purchase has anything to do with the increase in price as in some cases investors can finance their own purchase and in doing so change the people value (free market value) price.
What happens when affordable housing is no longer available? You now have distortion of free market value and of course non valid inflation coming from both the working economy requesting more wages as well as the FED who fixed the non asset problem of yesterday and hopes the increased asset value of today aids their books. We are back to inflation price increases mean joy for some and desperation for others. .
Hello bitcoins people trying to move out of the system and move the instrument that facilitates the trade into their own hands.
http://research.stlouisfed.org/fred2/series/PCEPI
Personal Consumption Expenditures have gone up
http://research.stlouisfed.org/fred2/series/A576RC1?rid=54&soid=18
wages have gone up
Gross Domestic Product (GDP)
Current Numbers:
4th quarter 2012: 0.4 percent 3rd quarter 2012: 3.1 percent
We have a decrease in GDP which can mean that we should not expect employment to continue to increase.
Stats look good so it appears the economy is doing well but stats are end results what people are doing today is tomorrows stats.
These measures helped the company post stronger-than-anticipated fourth-quarter fiscal 2012 results. Kroger declared impressive results on Mar 7, 2013, wherein earnings of 88 cents a share beat the Zacks Consensus Estimate of 70 cents, and surged from 50 cents earned in the prior-year quarter. In the last 4 quarters, the company has outpaced the Zacks Consensus Estimate by an average of 11.3%. Stock price 52 weeks 20.98 - 33.28 Kroger earnings were higher partially because per share earnings were computed on less shares than their prior statement.
Safeway SWY 52wk Range 14.73 - 26.54
Both stocks currency return looks great however as the economy there is a people use return that is not always calculated accurately.
The decreased supply of houses in Orange County has pushed prices up by nearly 10%..
Wages have gone up 6% for those who are working,
I think the financial system is relatively resilient it is the people economy which i believe could easily start to slow down. Part of the increase in consumer spending in my opinion has to do with an increase in credit card use.
http://research.stlouisfed.org/fred2/series/TOTALGOV?rid=14&soid=1
People you have to perform to save our FED May you all be as prolific as the easter bunny. |
