The inventory has hit the lowest mark since 1999 while sales touching the highest point since 2006. Is this indicating the same peak for the Housing Market that occurred in the eve of 2008 crisis

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InvestmentWatch

investmentwatchblog.com / BY IWB · PUBLISHED JANUARY 27, 2017

by Umar Farooq

Almost a decade after the peak of the American real estate bubble, there’s no shortage of fear that we will repeat the whole nightmare again. Housing market is back in the hands of flipping frenzy investors. Home flippers, who buy homes in the expectation of short-term price increase, accounted for 6.1 percent of U.S. home sales in 2016, according to Trulia, which defines a flip as a property sold twice in a 12-month period in arm’s-length transactions. That’s the highest share since 2006, when flips accounted for 7.3 percent of sales.

Housing investors in the local market have the potential to increase the prices speculatively, as recent history has made this known. When these speculative buyers jump into a market, they compete with buyers seeking a home to live in, deferring the availability of listings and pushing homes out of some buyers’ price range. Flipping has become more common as home prices have increased, said Ralph McLaughlin, chief economist at Trulia. Whether that’s cause for concern is an open question.

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