by Michael Snyder
End of the American Dream
Home prices have been rising aggressively all over the nation this year, and this has caused a tremendous amount of frustration among ordinary Americans that are looking for something to buy. As I have detailed in previous articles, we have often seen ferocious bidding wars break out for the most desirable properties, and many homes end up selling for way over asking price. Unfortunately, many potential home buyers don’t even realize that they may be competing with investment funds, billionaires and wealth foreigners. Gobbling up homes is now considered to be a way to make huge returns very rapidly. Once homes are purchased, they are either flipped quickly for a large profit or they are rented out at very aggressive rates. Meanwhile, it is becoming a lot more difficult for ordinary Americans to find affordable places to live.
We witnessed a similar buying frenzy just before the housing market crashed in 2008. At this point, it seems like home prices and rents can go nowhere but up, and investors are racing to capitalize on this trend. In fact, in some of the hottest markets investors are now buying “as many as 1 in 5 houses sold”…