Banks Are Crashing The Housing Market - Real Estate Bubble Pop

House Prices Falling! Real Estate Bubble! Housing Market Crash! House Price Crash! Housing Market! Real Estate Crash! House Price Bubble! Housing Market Bubble! Housing Market Correction! Real Estate Correction! WallStreet Buying Homes! Banks Buying Houses! A house builder in Texas built a development of 124 houses in Conroe, rented the properties out, and then put the entire development up for sale. A number of Wall Street firms and banks flocked to the sale, with the intention of buying up every single house. Usually, these houses would have sold for a collective sum of around $16 million or about $130,000 per house. The winning bid, however, was twice that, at $32 million dollars or $260,000 per house. The purchaser, Fundrise LLC, is a property investment firm which manages over a billion dollars in single family homes across the United States. It’s clear that the housing market is insane right now, just looking at average house prices in any town in the western world would tell you that, but the problem goes far deeper than just a lack of supply. Wall Street banks, institutions and pension funds are busy overpaying for every house they can get their hands on and pricing out working people. So Fundrise LLC and this development of 124 homes in Texas may not seem like a huge problem, but it goes far far deeper than this. It’s just, impossible for average people to compete with an organisation that has a billion dollars backing them. Think about it from the perspective of the seller. You’re a house builder, you’ve just built a decently sized community and have rented the properties out. Now while they are giving you an income, you had to take out millions of dollars of debt to build these properties, and before you can go on to build your next development, you need to pay off that debt, so you list them for sale. Now you have 124 homes, that means you’re going to need 124 sets of photos taken, 124 listings of the properties online, if we assume that there are say 10 viewings per sale, you’re going to need to show the houses 1240 times, and you’re going to need 124 buyers. That means 124 mortgage approvals, 124 background and credit checks, and 124 escrow agreements. The amount of work that this will take is absolutely huge, so you’re going to have to list these homes with a realtor, but not just any realtor. Most of them are small time, they might only have 20 or 30 listings at any one point, so unless you want to high 5 different realtors and work with them all at the same time, you’re going to have to go with a big company and that means you’re going to pay more in fees. Or you can list all the homes together, don’t even give the average person with a job and a kid the opportunity to buy the homes, instead sell them as a package to an investor. You can market the properties in one batch to a few dozen pension funds or Real Estate Investment Trusts, and as they’re already rented out, and are a good reliable investment, they might even go for more than if you had sold them individually. Now a few of the buyers get into a bidding war and end up offering far more than the houses are actually worth, but these intuitions are sitting on millions in cash that is constantly being eroded away by inflation, so to them, it doesn’t matter if they overpay, as long as they put their money somewhere productive. In this situation, you can’t blame the house builder for selling to an institution. It was easier for them, quicker for them, and made them more money. You would have to be absolutely insane to choose to sell them individually, when it’s just better for business to sell them as a whole. Sign up with Webull and get 2 free stocks worth up to $300: https://act.webull.com/ni/GjrJKWUktm4J/07y/inviteUs/main FAIR-USE COPYRIGHT DISCLAIMER Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, commenting, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational, or personal use tips the balance in favour of fair use. #HousePrices #RealEstateCrash #HousingMarketBubble

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