Price Hikes can Signal which Way Demand is Going
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I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.
One way to form an opinion about demand is to look at the number of listings that have seen a price hike. One reason for such increases is real estate flipping. Investors buy a property, do some work on it, and sell it at a better price. It is done quickly enough. Property prices generally rise to a range where the shopper demand is at the maximum level. This task is accomplished through adequate marketing and sales strategy.
Another way this works is via the big institutions. They buy property at a discounted rate by luring sellers with ready cash. They sell the same property without the discount they had received because they can afford to lock their capital for the time the property stays on the market. In the end, the discounted sum is their clean profit without having to raise any sweat. When such institutions pull out for some reason, as had happened with OpenDoor and Zillow, really happening Quarters can turn into average ones. Currently, the institutions are back and they are providing a fillip to the market.
Yes, pan-nation unhealthy price increases may give a signal of manipulative speculation, especially as the price hikes are close to where they were at the time of the 2007 bubble. For now, we are safe though and the bullish price signals are cause for merriment.
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