4 ms·

I hope that it gave us look at what will happen with all these real-estate-bubble-inducing a*holes.

• brink 5y ago
  I too am tired of the greed.
• ianai 5y ago
  It might and it might not. Many things have rolled down the pike that in normal markets would cause reevaluation and correction downwards. But so far they’ve all been pushed past. My professors used to say “when the last stalwart holdout is sold on the premise of the irrational factors holding the market up the correction is near.” (Or something like that.) I seem to recall it being Enron filing bankruptcy that really kicked off the Great Recession. Oh further, anytime you have your market appraiser becoming a market participant their valuation becomes highly unreliable. This is another thing that’s just not done if you want to have a reliable indicator of an assets value and sell it knowing whether you’re getting a deal you’ll be comfortable with long term or not.
• ashtonkem 5y ago
  It’s really not clear to me if we’re in a bubble. A lot of these houses sold to investors are aiming to generate rent, not be resold at a higher price. Zillow appears to be relatively alone among institutional investors in aiming to flip homes and not rent them. If corporate land lords are extracting enough rent to justify the higher than normal prices, is that really a bubble? It’s socially pernicious, yes, but that doesn’t sound like an asset bubble to me.
• bpodgursky 5y ago
  The bubble was caused by fiscal, tax, and homebuilding policies. Zillow wasn't even renting the the houses it bought, just flipping. Blame the government; Zillow had nothing to do with the housing price blowup.