How home flipping is affecting the housing market

House flipping across the U.S. is at its highest levels in more than 20 years. While investors are taking advantage of a white-hot market, home buyers are feeling a pinch. Jennifer Kingson, chief correspondent at Axios, joins CBS News to explain how house flipping may be hurting the overall housing market.

#news #housingmarket

[nhendrickson]

This is accurate. I'm glad someone's finally saying something about it. I've been in the buyers market for 3 years and have been outbid twice on entry level homes in the city I work in that I could have afforded. It's flippers that I'm competing against . I've expanded my search area to up to 30 minutes from work and kids daycare.. Stable affordable housing is the cornerstone of healthy communities. It's officially out of reach.

[kartiersupremewhite]

There are 9 new homes on my block just built that are Empty!!! With high Rent Prices. The hedge fund folks are buying homes Cash and renting them out at profit.

[danielpiazza]

Older generations are hurting younger ones. Intentionally.

[sinforoso]

Entities used to build housing for a profit, now they are into the business of scooping up everything in sight. They either turn around and list it at a higher price, or they rent it out. Government moratoriums and pandemic conditions really did a number on the inventory. They have used that to their advantage since those conditions made inventory easier to control in many areas. Yet the government has stood by without implementing any measures to abate the squeeze that first time home buyers are feeling. Many of these families that have overstretched to be able to compete will be in a world of hurt if the recession materializes now that the market is entering a correction.

[shanerogers]

I’ve seen homes in my area (south Florida) already bought and sold twice in 2022.

[asoc]

rent properties are ridiculous. Paid 1850 for 15 years, rent went up multiple times and the owner didn’t want to renew with us. 2 months later, it’s now $2650 for rent! He only replaced was the carpet that was 35 years old.

[magicunicorn]

House flippers are evil and greedy. It should be illegal.

[jsEMCsquared]

How about renters suffering by being kicked out!!!!

[johnnygavin]

Crazy if you look at a property ownership history. Massive increases over the years.

[JP-eoxb]

💎🙌🏻 Don’t buy these over-priced homes that aren’t worth half their cost. Don’t get caught holding the bag 💩

[barano]

Every home flipper I have ever worked with cuts extreme corners. Why would anyone buy a home from them? Lord have mercy.

[gizelop]

The banks and financial institutions will not provide financing for the lower income can buy a house they could afford to fix

[alexanderperez]

It's crazy how many people i know that are house flipping.

[jdbmm]

Today Day 5th we're in the Recession, congratulations to all

[davidford]

OK how does institutional investment lose profit due to mortgage interest rates going up when you just got done stating that they are all cash buyers interest rate doesn't affect cash buyers
You lost me

[regret]

If prospective first-time buyers really wanted to stick it to the institutional investors who are flipping homes (and the governments that allow such behavior), it seems that the best option might be renting an apartment.

Maybe I'm partial to apartment living in inner cities and inner suburbs and I understand that this action is easier said than done, but this is how I might handle this matter.

[Bloods]

Housing market will fall 15-30% depending on the market. Biggest deviation in mortgage cost to wages in US history. And with the majority of people unable to afford a surprise $500 payment, artificial government intervention (rates, stimulus checks), not to mention an impending recession that we were on track to experience in early 2020 before the pandemic even began, this will fall. Many flippers will be left with a hot potato with no buyers. Expect inventory to shoot to pre-pandemic levels and unemployment to be back at 6% at the end of the year. Stock prices+inflation has Americans squeezed more now than ever. Americans can not afford this housing market. Lots of homes to come on to the market in early 2023, highest number of payment delinquencies, the biggest debt bubble in our countries history by FAR. I’m not sure how some people can be so blind to not see the writing on the walls. Although, people were saying the exact same things in 06/07. Those type of attitudes are exactly what’s going to put us in a deep and long recession with lots of layoffs, foreclosures, and heartache. Save your money, there will be buying opportunities but now is not the time. You will see zero ROI for 5+ years.

[brianoleson]

i dont think people are getting the idea here that for the 1st time in 15 years we have a real chances that the flippers and investors are going to leave and sell off. This is the 1st time we have had record rates squashing profits and we have a recession so this video is 2 years to old at this point we turned the page

[brianoleson]

this fipping and investor stuff in housing is ending here our atleast the biggest slowdown in 15 years this is a whole new era spring/summer 2022 everything in this video is "was" this isnt 2020 or 2015 or 2010 anymore we turned a page a few months ago

[Law]

This is a nothing burger. It's like Uh lady said, flippers only buy distressed properties that normal home buyers wouldn't buy anyway. Most home buyers want a turn key move in ready home that they don't have to do any work to because renovations can become a headache either the costs get out of control or the general contractor is difficult to deal with, they either do a terrible job or upcharge. I know some clowns who bid 60k to renovate a small bathroom which normally would cost 6k.

Home flippers provide a necessary service to neighborhoods, they bring curb appeal to an otherwise ghetto area and provide livable homes to the market. People complaining about home flippers are instigating unnecessary conflict, they're ignorant people who 1. Wouldn't buy these houses anyway and 2. Leave neighborhoods in a dilapidated ghetto state.