Investors Rescue Phoenix-Area Housing Market, but the Future Is Uncertain

By purchasing and holding tens of thousands of existing homes, investors have  created a demand where little had existed and drastically reduced the  inventory of homes for sale, which has helped boost prices over the past six months.  The investors' goal is to buy and rent out a large portfolio of homes and collect monthly lease revenue until home prices increase to significantly higher than what the investors paid, at which time they will sell the homes. This snatching up of homes by investors makes it nearly impossible for traditional homebuyers in  certain neighborhoods to acquire an existing home without paying a premium to  an investor, but it also raises serious concerns about what will happen to the housing market when all  those investors decide to sell.  The concerns about the destabilizing effect investor dominance in  the housing market could have on local communities has led to programs designed to help offset this negative effect. Fannie Mae, the first bank-owned home  seller to express concerns about this destabilizing effect has implemented a program called First Look,  which prohibits investors from bidding on Fannie Mae-owned homes for the first  15 days after they are listed for sale.   Read more...

By |2012-04-04T11:25:50-07:00April 3rd, 2012|Economy, Housing Market, Real Estate|0 Comments

The Fed Ponders QE3

Well, we had to know when Ben Bernanke stated that QE2 would be the last of the Fed injecting money into the economy, it would only be a matter of time before QE3 came along. It appears the money printing madness will continue.

By |2011-11-29T12:15:45-07:00November 29th, 2011|Economy|0 Comments

Banks Will Be in a Survival of the Fittest Scenario

Third quarter earnings may look strong for many banks, but worries about the European sovereign debt crisis and the increasing squeeze on smaller banks will likely lead to increased consolidation as  stronger mid-size banks will acquire the strongest community banks and troubled banks will be shut down.  Read more here:   Money Talks: Western Alliance repays TARP funds with SBLF funds.

By |2011-11-01T10:53:09-07:00November 1st, 2011|Economy, Home Loans|0 Comments