This article really describes our market perfectly. Hedge funds are in there buying up everything regardless of price or condition. In some areas, there is less than a one month supply. 6 months supply is normal.
If you are looking to buy a house below $313k, lots of luck.(if you are relying on a realtor) Since single family houses are the new darling of wall street and foreclosure activity is down, getting in is tough.
These wall street guys are taking investing in real estate from a mom and pop operation to a big industry. Since the govt in their meddling ways has decided to turn bank owned homes into rentals thus creating a new product for hedge funds to buy, this has become a cottage industry subject to all the problems that amateurs in any area can cause.
AND THESE PEOPLE ARE AMATEURS. They think they can take their wall street financial cutie plans and apply them to an area that they know nothing about. Can you just imagine the problems that will be generated by securitizing rent pools and selling them as securities? If you think that bundling mortgages caused problems when people stopped paying their loans, guess what will happen when people stop paying rent- as they always do?
They had better hire more staff for the eviction court system.
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