1-407-575-5392
Menu

House flippers

NEXT
PREV
  Follow me: Wendy Morris on Twitter Wendy Morris on Facebook Wendy Morris on LinkedIn
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

Al Capone | Bella Collina | Broker Associate Wendy Morris Realty | Celebrity Homes | Disney News | Drones | Foreclosure | For Sale Cannon EOS 7D Cameras Plus all the Lens | Hamilton Gardens Winter Garden Ryan Homes | How to Price your Home for Sale in Orlando Fl | Landlord | ORLANDO HOUSING MARKET REPORT - AUGUST 2018 | Orlando Market Reports | Orlando Penthouses | Queen of Versailles Jacqueline Siegel | David Siegel Windermere Lake Butler Sound | STAR WARS GALAXY?S EDGE | Summerport Windermere Fl | The Butler Chain Of Lakes Windermere fl | Waterfront Homes Clermont | Wendy Morris | Wendy Morris Realty | Wendy Morris Realty Marketing | Wendy Morris Realty Ocala | Whitney Isles Windermere Home For Sale | Windermere Fl |


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 2/15/19)

Listing Search



Translate Tool

Featured Listings
Tavares Real Estate
$480,000
3 BED
2 BATH
Highly sought-after location on popular Lakeshore Drive with direct frontage on Lake Dora, the crown jewel on the Chain... Read More
Haines City Real Estate
$170,000
2 BED
2.5 BATH
If you love to fish this is the property for you. Located on Lake Hatchineha which connects to the Lake Towhoe chain of... Read More
Windermere Real Estate
$969,000
3 BED
3 BATH
Incredible opportunity to get on the Butler Chain at an affordable price - Charming pool home with a panoramic view of t... Read More
Orlando Real Estate
$1,950,000
5 BED
4.5 BATH
EMBRACE LIFE ON THE LAKE! Nestled in the world famous Bay Hill community, home to the Arnold Palmer Invitational Golf T... Read More
Windermere Real Estate
$2,200,000
6 BED
5.5 BATH
Location, location, location—and then there’s the extras this exquisite home has to offer. You’ll be inspired to live ... 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 -2019 windermerehomes.net - all rights reserved. | Site Map