The LA Times Alejandro Lazo reports that U.S. home prices climbed 12.1% in April. Low inventory remains an impetus, and the NY Times’ Nathaniel Popper points out that Wall Street is playing a not-so-minor role. “Large investment firms have spent billions of dollars over the last year buying homes… The influx has been so great, and the resulting price gains so big, that ordinary buyers are feeling squeezed out.”
It’s worth noting that this investor-backed buying spree has not been particularly prevalent in the greater LA area, where the number of foreclosures was small by national standards. However, we’re still feeling the effects. Popper continues, “While these investors have not touched many healthy real estate markets, they are among the biggest buyers in struggling areas of the country where housing prices have been increasing the fastest. Those gains, in turn, have been at the leading edge of rising home prices nationwide.”
For more information, and advice on how to stay ahead of this competitive market, contact Tracy Do Real Estate.
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