Wall Street firms are exiting the housing market. Big time.

[roamer65]

Nick Gerli of Reventure Consulting reporting on his latest findings in the housing market. Wall Street housing companies are starting to sell at big discounts.

[SWBTATTReg]

1. Good. I hope that they get whiplash. They distorted the housing market for their own benefit and now, they're

going to pay a big price, the housing downturn is sucking all of them down, as they should be. It goes to show that these idiots, thinking they know it all, are caught in the wringer, and I'm enjoying every bit of it. I hope that they suffer.

[Bluetus]

2. Please provide a text summary

Normally I don't waste any time with posts that just dump a URL and say nothing. Please take the time to at least write a paragraph that summarizes the video. IN this case, here is a fellow who has a good knowledge of residential real estate and he goes into some depth about a trend he is observing with these remote landlords making aggressive moves to dump some of their properties. He suggests this might signal the beginning of another pattern like 2008.

Caution: this video is very specific to the Atlanta market and may not hold true elsewhere. But it has been a major trend since 2008 (and again post COVID) for big corporations to buy lots of houses for remote management. This was a big issue with my HOA. We revised our covenants last year to include some strong poison pills to discourage remote landlords.

[roamer65]

3. Duly noted.

[tulipsandroses]

4. Interesting. I'm in GA. Similar houses in my neck of the woods are still over 300K.

Definitely something to pay attention to.

[FloridaBlues]

5. Builders at least in my area of Florida have over built there's

A gut of them and not moving. House prices have dropped over this past year. I should have sold my house several years ago when it was very hot.
Now a buyers market.
I hate to think of what’s coming in trumps economy

[OrlandoDem2]

6. In Orlando/Central Florida there is a lot of inventory (slow sales) but prices are reached an all time high last month.

[Frasier Balzov]

7. Biggest takeaway for me is the risk-adjusted return.

With the 10-year Treasury rate as high as it is, it no longer makes sense to tie up capital and incur carrying costs in exchange for the income stream an investor receives from residential rents.

Until recently, when the Federal Reserve was still keeping interest rates low, the potential return from rents made the trouble of owning housing worth holding this kind of investment. Now the same return can come from U.S. Treasury securities without the hassle.

[roamer65]

8. Bingo.

Well put.