By Tyler Durden
Back in 2005, anyone with a modest amount of startup capital and a dream could become a millionaire flipping houses. The complete disregard for the underlying risk building up in what was later exposed as one of the biggest pricing bubbles in history resulted in investors dominating a market that had previously been reserved for boring people who actually intended to purchase homes to live in them.
Alas, as the Wall Street Journal points out today, it seems that the lessons learned from the previous crash in the housing market just a few short years ago have already been forgotten as “all-cash investors” are once again crowding out entry-level homebuyers in overheating housing markets all around the country.
Meagan Freeman and her boyfriend have been looking for a midprice house in the Seattle area for six months but keep running into a hurdle: cash buyers swooping in and snatching up their properties.
It has happened three times, she said, most recently two weeks ago. The couple bid on a home in an unfashionable suburb they believed was a sure bet in the midst of a dreary Seattle November, when the market typically is slow.
Instead, the 27-year old said, a …read more