The housing market’s pricing is too high.

There is collateral fraud in bidding up houses to the level that ordinary individual home buyers can’t buy. Exhorbitant pricing is evidence that residential real estate has been bought by investors with deep pockets that have systematically bought and traded up housing prices to drive residential market prices out of the grasp of ordinary people. This is collateral fraud when the misrepresented value is used in sequence to secure serial properties that are subsequently overvalued.

I have recently read that only 23% of the housing market is owned by investors. I wonder if that includes bank owned foreclosures. I must observe here that individual home buyers can’t compete with investors who have access to cheaper and larger amounts of capital.

I have also recently read that when investors bought houses in 2010, putting a floor under American real estate after prices plunged in 2010, they saved the housing market and didn’t cause the ridiculous price increases that we see today. I don’t agree that this saved the housing market. Preventing a market correction is interfering with natural market based pricing. That’s a kind of monopoly power and it’s a RICO offense.

Recently when I was looking at real estate pricing across the nation using the internet, I received a call on my cell phone asking me if I had any property to sell. I said no. I get these calls every week. It isn’t an individual calling me who wants to live in my house. It is an investor’s call center.

I would never have bought a mansion to live in. I always knew that I didn’t want the upkeep that a mansion requires. And I didn’t want to pay the tax-man a huge amount in order to live in an extravagant space. And yet my ordinary home is now priced at what was once considered the cost of a mansion.

There would be an outcry if people’s houses were valued at the new accelerating price for the purpose of taxation. The value of my property has risen already by at least 200% according to the state tax board. This has significantly raised my property tax. But when I do a local real estate search in my area bracketed in that price range, the properties that come up are far more humble than the home I currently own. I think that means that I can only sell my house at this tax based price valuation to an investor who will immediately list this property for $400,000 more. I’m seeing $100,000 price increases yearly for several years serially in many real estate markets across the nation. This rate of price increase will effectively remove most real estate beyond what is affordable for a family to purchase. It’s also why retirees aren’t downsizing. If they sell and buy a smaller property, they can’t harvest a profit from their larger property. The smaller one will cost the same as their larger property’s sale price.

American families can’t buy in this market. They are being shut out of housing by investors. Market forces aren’t pitiless like this but monopoly forces are. The rate of property taxes will likely force people out of housing eventually. Slow but sure. Retired people who live in states that don’t charge property taxes for retired people will still go to ruin under this price scheme because inflation and taxation of other parts of the economy will bleed them. Relentless. Faster by far than water wearing away stone.

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ADDENDUM:

I just read a great article that goes far to explain what is happening in American real estate. It is available here: https://www.coreysdigs.com/u-s/university-migrant-smart-hubs-private-equity-and-the-leveraged-buyout-of-america/ . The title is “University Migrant Smart Hubs, Private Equity and the Leveraged Buyout of America,” and I found a reference to it on Solari.com, the author is Corey Diggs and it is dated June 15th, 2024. Don’t miss this information rich source. Corey Diggs also recommended a book entitled: Plunder, Private Equity’s Plan to Pillage America by Brendan Ballou, which is promised to be another information rich source that will clear up your confusions and explain in detail what is happening to real estate accross America.