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Jed Kolko
Even with modest slowdown, why are home prices still climbing? One reason: buying still 35% cheaper than renting.
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Logan Mohtashami 29 Oct 13
Replying to @JedKolko
and still first time home buyers and mortgage buyers as a % of the market is soft even with rates under 4.5%
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Fazli Erdem 29 Oct 13
Replying to @JedKolko
How do you explain the fact that between 1/3 and 1/2 of the houses are sold for cash?
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Fazli Erdem 29 Oct 13
Replying to @JedKolko
How do you explain only 28% of the houses are sold to first time home buyers? (Much lower than historical 40%)
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Fazli Erdem 29 Oct 13
Replying to @JedKolko
The only explanation is that banks, investors, hedge funds are buying them in cash. Keeping the inventory low.
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Fazli Erdem 29 Oct 13
Replying to @JedKolko
By keeping the inventory low, they hope to keep the market/prices high, eventually unload all their housing holdings.
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Fazli Erdem 29 Oct 13
Replying to @JedKolko
But once they do unload them, we may have another housing crash. Watch out.
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