from Zero Hedge
With the S&P500 hitting new all time highs every day, one question that has emerged is whether this newfound “paper wealth” is finally trickling down into the US housing sector which still has to surpass its pre-crisis levels.
Alas, a new report shows that a new threat is emerging for US housing. Or rather, an old and very well-known one: house flipping by third party investors at auction is back with a vengeance. According to RealtyTrac, the share of foreclosures snapped up by third-party investors at auction just hit a record 31% in June. This is a redux of the “same fervent speculation that pushed the housing bubble.”