An irreverent look at Wall Street
Agreed.This stack shacking phenomena won't last. Sure, for a while people can do that but livin like the Waltons is not most folks idea of home sweet home.Home construction is not only below population growth but below just normal dilapidation and teardown numbers. We will soon begin to hear of a housing shortage with as little of construction as we have now. These numbers are unsustainable.....on the downside.Little anecdote from, Ca.A freind was hot to buy a fantastic home that sold in '06 for 3 mil this past summer. Bank was asking 725 k.With all the bearish talk, he bid below the ask from the bank and the house was taken by another bidder at ask. Boy, is he pissed at himself for letting that go. It was a beauty with everything you could want. Now he thinks, what was I waiting for?? Were prices going to go to zero?? Even if it fell to 500k it would still have been a great place to live. He says now that same home would easily fetch over a mil.Not only that but the homes he bid on since have all been getting bids OVER the banks asking prices.
One of the head of one of the companies in CA that is Fannie's biggest client in CA, told me that properties are getting many multiple bids, and routinely selling above the ask.Furthermore, there is now big pressure to take investors out of the equation, and putting homes in the hands of homeowners.By getting rid of the investor middleman, its raising prices also.Stack shacking--I love that term! It encapsulates the entire homeowner story in two words!
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