1-407-575-5392
Menu

House flippers

NEXT
PREV
  Follow me: Wendy Morris on Twitter Wendy Morris on Facebook
Tue, Dec 13, 2011 at 2:05PM

House flippers — made up of investors who bought up homes during the housing boom, possibly made a few upgrades to the home, and quickly resold the homes for high-dollar profit — played a larger role in causing the housing bubble than previously thought, according to a new federal report out by the Federal Reserve Bank of New York. The impact that speculative real estate investors played in driving the housing downturn has mostly been overlooked until now, the researchers note. 

The speculative investors used low downpayments and subprime credit in buying up multiple homes at once, the report says. Their actions attributed to home prices in some areas being inflated, researchers say. 

"This may have allowed the bubble to inflate further, which caused millions of owner-occupants to pay more if they wanted to buy a home for their family," researchers note in the report.

House flippers made up a big piece of the real estate market during the housing boom.  According to the report, more than one-third of all home mortgages from 2006 were to people who already owned at least one home. What’s more, “in Arizona, California, Florida and Nevada, where average home prices more than doubled from 2000 to 2006, investors made up nearly half of all mortgage-backed purchases during the housing bubble,” the Associated Press reports. “Buyers owning three or more properties represented the fastest-growing segment of home owners during that time.”

When home values began to fall in 2006, investors defaulted on their loans in large numbers, accounting for more than 25 percent of seriously delinquent mortgage balances, according to the report. In investor hot-spots like Arizona, California, Florida, and Nevada, investors accounted for more than a third of seriously delinquent mortgage balances from 2007 to 2009.

The report urges lenders and regulators to take action to limit speculative borrowing in order to avoid a future housing downturn.  

See a Current List of Bank Owned Homes we have for sale at Wendy Morris Realty Below


Bookmark & Share



User Comments


Be the first to comment on this post below!


Popular tags on this blog

9935 Grosvenor Pointe Cir. Windermere, FL 34786 | August Real Estate Market Report | Butler Chain | Dr Phillips Homes for Sale | Grosvenor Pointe Cir | Harry Potter | http://www.windermerehomes.net/9935-Grosvenor-Pointe-Luxury-Home-For-Sale-New-Construction-Waterview | Julian Rubin | June 2013 Market Report | Keenes Pointe | Mecum Auctions Kissimmee | Merry Xmas from Wendy Morris Realty | Orlando New Construction Homes | Orlando Property Market Report November 2014 | ORRA | Prime Minister Dies | Remington Villa for Sale Kissimmee Florida | Shortsale V Foreclosure Windermere | South West Bulletin Orlando | St Cloud Lakefront Property | Stonebridge Homes | wendy morris realty | Windermere Homes for Sale | Windermere real estate listings | Windermere Rentals |


All listing information is deemed reliable but not guaranteed and should be independently verified through personal inspection by appropriate professionals. Listings displayed on this website may be subject to prior sale or removal from sale; availability of any listing should always be independent verified. Listing information is provided for consumer personal, non-commercial use, solely to identify potential properties for potential purchase; all other use is strictly prohibited and may violate relevant federal and state law. The source of the listing data is as follows: My Florida Regional MLS (updated 6/27/17)

Listing Search



Translate Tool

Featured Listings
Windermere Real Estate
$1,795,900
2 BED
3.5 BATH
RARE OPPORTUNITY 800 FEET OF FRONTAGE 1.8 ACRES LAKEFRONT ON LAKE DOWN. This is a very private, wooded home site with m... Read More
Windermere Real Estate
$5,650,000
5 BED
4.5 BATH
LAKEFRONT ISLEWORTH ESTATE, 400'' shoreline on Lake Isleworth, 1 of 11 lakes on the 6, 500 acre famed Butler Chain of ... Read More
Windermere Real Estate
$3,200,000
5 BED
6 BATH
ELEGANT ESTATE in the highly sought guard-gated community, The Reserve at Lake Butler Sound. Perfectly positioned on ne... Read More
Windermere Real Estate
$5,750,000
6 BED
8.5 BATH
Unparalleled Isleworth estate with amazing views of Lake Butler combined with direct golf course frontage on Iselworthâ€... Read More
Windermere Real Estate
$2,000,000
5 BED
6 BATH
This Tuscan inspired 5 bed 6 bath Custom lakefront home with mature oak trees is in an exclusive neighborhood on a paved... Read More
Contact Wendy Morris

407-575-5392

Wendy Morris LLC
DBA Wendy Morris Realty
Licensed in the State of Florida
BK 3146762
14832 Speer Lake Drive
Winter Garden, FL 34787

Your privacy is our utmost concern. We will never sell your personal information. Privacy Policy
©2011 -2017 windermerehomes.net - all rights reserved. | Site Map