Frenzied flipping and speculation leave many housing markets and builders with a large inventory of homes to get rid of. For a long time, the housing market was on steroids. It was high time that the correction got started.
Long gone are the days when people were spending nights in parking lots with TV, snacks and drinks in the company of thousands of people doing the same thing. They wanted to have their place in line towards the purchase of a home which they intended to get rid of immediately. No, it was not the release of a hot movie or a video game. Flippers took over the markets in Las Vegas and Florida. They waited in line for hours. They wanted to purchase and cash out of it soon. When the home prices took a dip, many investors were left with homes they could not afford. Many of them abandoned their downpayments or deposits. Those who had already completed the deal end up filing for foreclosures. Financial disaster was the name of the game. New home builders had to adjust in order to not add to the glut of homes on the market.
Posts
