This week in Real Estate News

(Blackstone Logo) Very optimistic news has been coming out lately regarding the real estate market. With the market transitioning from distressed to regular market we are seeing the discount for foreclosures going down. NAR claims we will see a 15% across the board gain in prices nationally. Speaking for the local market it has seemed to me we have seen a 15% gain over the last 3 months. Marketwatch is reporting that investors are buying homes cash and then after the deal closes they refinance in order to get their cash back out. To me its nothing new, my investors have been doing this since 2009. It’s a great idea and helps a lot as far as locking in a good price and beating out the competition. The Sacramento appraiser blog reports that a hedge fund called Blackstone has bought up 158 homes since 8/1 or just under 3% of the total market. Not sure how I feel about this, on one hand it means wall street is betting on the recovery and on the other its also making it signifigantly harder for entry level FHA buyers to get in the market.

1) Why the ‘Foreclosure Discount’ Is Helping Home Prices.
Foreclosures have accounted for a shrinking share of home sales in more markets over the past year, and this also helps explain why prices are doing better. Home prices are rising, consequently, because there are fewer foreclosures selling as a share of total sales, and those foreclosed properties are also trading at less of a discount than they were one year ago
2) NAR Economist: Home Prices to Rise 15% in 3 Years
National Association of Realtors Chief Economist Lawrence Yun foresees U.S. home prices rising by 15% over the next three years, a boost for the beleaguered housing market.
New real-estate fad: the all-cash head fake
All-cash buyers have a better chance of standing out from competing bids and getting the home at a lower price since their offer isn’t contingent on financing.
4) Hedge funds dominating the market in Sacramento
As an example, consider Blackstone, a hedge fund that began aggressively buying properties in the Sacramento market over the past few months. Since August 2012 they’ve purchased 158 sales on MLS as THR California LLC.
5) Teenage landlord turns bad economy into good investment
A Florida teen is using Florida's foreclosure crisis as an opportunity to invest in buying houses while the market is low. Anna Werner reports the teenage landlord expects to own 10 houses by the time she's 18.