not understand why...
At the beginning of the RE collapse, the foreclosures were being bid down by everyone looking for a deal.
As the prices in the Sand States - Cal, Nev, Fla & AZ - dropped below the Dead Zone prices - 2002 to 2007, "cash buyers"/investers moved into take over the market. People trying to buy a home using a new mortgage simply could NOT move fast enough to find a home; and even if they could, they were being out bid for them.
Then, recently we shifted over to "short sales" - cash buyers and home seekers, knowing that they were never going to find a great deal in foreclosure sales, opted use "short sales" to try to cherry pick off the best deals.
What is NOW talking place is another shirt - new buyers are faced with extremely high rental numbers, with prices dropping like flies.
Unless they are prepared to hold the property, even sitting empty, they need to sell them, quick. And, with the New Home Buyer Tax Credit the buyers CAN actually find some financing.
The real question is what happens when the Tax Credit program stops? Is there really enough pent up demand? Can they turn a quick buck?
We'll see.
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Return of the House Flippers
http://news.yahoo.com/s/bw/
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House Flippers in U.S. Crowd Courthouse Steps in Hunt for Deals
http://www.bloomberg.com/apps/
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