Wall Street’s housing bet shuts out buyers

TRD MIAMI /
Apr.April 22, 2013 02:00 PM

Wall Street and institutional investors account for 70 percent of home sales in some Florida markets, raising doubts about the state’s housing recovery, the Washington Post reported.

Investors are helping to revive moribund markets as well as the prospect of another Wall-Street-fueled bubble, the Washington Post reported. A surge in demand partly explains rising home prices in South Florida, despite high unemployment rates and few lenders issuing mortgages.

Buying up distressed properties and carving them up into rental units makes sense in a context of declining rates of homeownership in the U.S. The homeownership rate, which peaked at 69.2 percent in 2004, fell to 65.4 percent at the end of 2012, the Post reported, citing the U.S. Census.

With cash, clout and a growing appetite for single-family homes, investors may be shutting out would-be homeowners from the best bargains in a decade, according to the Post.

“The investors are making it hard for a regular homeowner to buy a property,” said Robert Russotto, a broker with Better Homes and Gardens Real Estate in Fort Lauderdale. “They are getting outbid by people with cash.” Russotto told the paper that out of the 20 home sale contracts he is the process of completing, 17 of the buyers are major investors. [Washington Post] –Emily Schmall


Related Articles

arrow_forward_ios
Rendering of Belmont Village Coral Gables and Baptist Health South Florida CEO Brian L. Keeley

Baptist, Belmont gain approval for luxury senior living in Coral Gables

Baptist, Belmont gain approval for luxury senior living in Coral Gables
9885 Palomino Drive (Credit: Google Maps)

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
5010 Nob Hill Road (Credit: Google Maps)

Sunrise affordable senior housing facility sells for $30M

Sunrise affordable senior housing facility sells for $30M
Mark Zilbert

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices
(Credit: iStock)

Home sales dropped big time in South Florida in April

Home sales dropped big time in South Florida in April
 Rendering of Father Marquess-Barry Apartments with Matt Rieger

HTG scores financing for senior affordable housing in Overtown

HTG scores financing for senior affordable housing in Overtown
Renderings of different versions of the project with Matt Rieger

HTG plans 1,000-unit affordable housing complex in Miami’s Overtown

HTG plans 1,000-unit affordable housing complex in Miami’s Overtown
Pharrell Williams (Credit: Ethan Miller/Getty Images)

South Florida by the numbers: Bright spots in a challenging market

South Florida by the numbers: Bright spots in a challenging market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...