Tim Rood wrote an interesting post today on
Here’s a quick excerpt
Wells Fargo Bank’s
Economics Group has issued commentary on housing which updates
concerns it says it has raised over the past few month “that the influx of
investors into the housing market may be exaggerating the extent and magnitude
of the recovery in home sales and home prices.” Much more has been made of this issue in
recent weeks, the commentary says, “and some headlines have even raised
the specter of another housing bubble.”
While some markets
and submarkets have a bubble feel to them, a more likely outcome, the
commentary says, is a “bubble within a bust that supports a temporary
spike in home prices.” As interest
rates move up the risk-adjusted returns for investors who convert single-family
homes to rentals will diminish as will investor purchases…
…(read more)
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Read the rest of this great post here
