Talk about the distortions created by bizarre Federal Reserve policies and Federal government policies.
“Increasing home prices fueled by an intense housing shortage have created opportunities for investors to reap big profits,” said Redfin Senior Economist Sheharyar Bokhari. “Those same factors have pushed more Americans to rent, which also creates opportunities for investors because investors typically turn the homes they purchase into rentals and can now charge higher rents.”
Indeed, Redfin also reported that average monthly rents rose 10.7% year-over-year in September, the fastest growth in at least two years, while the median home sale price increased 13.9%.
“With cash-rich investors taking the housing market by storm, many individual homebuyers have found it tough to compete,” Bokhari added. “The good news for those buyers is that the housing market has started to cool. Bidding wars are on the decline, and if home-price growth continues to ease, we may see investors slow their roll.”
Limited inventory, crazy home price growth and The Fed STILL won’t take their massive foot off the monetary accelerator pedal.