Quote:
Originally Posted by b4hand
From what I have been seeing, it is a lot. The potential 10yr return on buying a house, even overvalued, and renting it, is more than a 10yr bond. IMO it's not going to settle until the Fed stops propping up the market. They need to stop buying bonds and raise interest rates, until then, it's free money for Hedge funds and the like to continue to move wealth to real estate.
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This makes more sense as to what is contributing to this frenzy. In my opinion, regular home buyers feeding into it doesn't help the situation nor does the current monetary policy as you've mentioned. Classic case of not really thinking through consequences of cheap money.