As our country sinks further into debt,--whats to keep Chinese investors from
buying up our houses?
My wife and I are currently in the market and have seen some of these held back
foreclosures that Res Novae has referred to. Sad part is, these empty homes are
deteriorating with every month they stay empty. That brings the value down, not
only for the home, but for the neighborhood. The banks, probably at the behest
of the government are not doing the housing market any favors when letting good
homes go to waste. Especially when lots of buyers are available. HUD and
others should want to get these homes into new hands ASAP. That would keep home
values and neighborhoods up. In other words, I don't understand their
policy. But, since it's big government, how could I.
A major factor in the surge is FHA requiring mortgage insurance last for the
life of the loan effective June 3, 2013, rather than allowing the insurance to
be dropped when loan to value goes below 78 percent.
A couple of caveats. First, who are the buyers? I think there's evidence
that a good portion of them are buying them for flip sales, which is reminiscent
of the last bubble.Second, banks are still holding back many
foreclosures from the market. I'd be concerned that this is creating
artificial scarcity and pushing home prices up from what the real market value