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Wouldn't more velocity actually help the issue? Changing hands for profit repeatedly is how arbitrage works to homogenize prices and availability.
by Nasrudith 6y ago
Wouldn't more velocity actually help the issue? Changing hands for profit repeatedly is how arbitrage works to homogenize prices and availability.
- axaxs 6y agoI don't think so. If I had a million dollars in free cash, I can just sit and buy 6 houses at 150k. And because I'm paying cash, those plebs with their home loan don't stand a chance in beating me. Better yet, I can buy foreclosed homes or short sales, which borrowers can't. This ultimately either pushes some down into renting, or some up into a higher priced house, both of which increase their respective prices. If you limited home purchases to say, one per year or two, it would open back up the lower cost market. Not every house needs to be flipped.