Fraudulent Speculators Adding to Housing Bubble v2.0
In a return to the fraudulent mania of the 2005/2006 real estate bubble top, speculators are again using fraudulently obtained loans to gain access to ‘Prime’ financing markets.
Recently released data from the NAR series of Annual Investment and Vacation Home Buyers Surveys suggests some disturbing activity. Vacation home sales in the United States are up nearly 60% yoy thru 2014, while investment home sales are floundering. Vacation classified home sales have reached over 1.15 million in 2014 or nearly ¼ of all home sales in the US.
Combined, vacation and investment home sales in the US are now quickly approaching half of all home sales in the US.
The average price paid for these ‘Vacation’ homes are down 11% yoy vs. the overall market increase of 5%. It doesn’t take long to figure out the divergence in pricing is solely that of misrepresented sales by speculators.
Finally, this sort rabid speculation has only existed one time in history….Housing Bubble v1.0.