No Housing Bubble in Phoenix: Report
Basically, it seems that investors are being unfairly blamed for a shortage in housing supply. While investors make up a good chunk of the demand, the lack of supply can be explained by at least two other factors.
One, many homeowners cannot afford to sell their homes, because they owe more than what their homes are worth or lack sufficient equity in their home to "trade up." According to Zillow, 44% of homeowners with a mortgage cannot afford to sell their homes.
Two, there has been little new home construction in years. Homebuilders need time to ramp up construction to meet resurgent demand for homes. Amid rising land and construction costs, new homes that have been built are targeted at the top end of the market, allowing builders to maintain their margins.
As a result, there are few small and inexpensive homes that are typically sought by first-time homebuyers.-- Written by Shanthi Bharatwaj New York. >Contact by Email. Follow @shavenk
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV