Reply to Is there another "housing bubble"?

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[quote=Anonymous]Good article on the impact of flipping:

http://www.chicagotribune.com/classified/realestate/ct-a-frenzy-for-flipping-houses-real-estate--20170303-story.html

"Flippers, particularly after the housing bubble burst, sometimes have had a bad reputation as damaging neighborhoods by driving up prices too quickly and by forcing first-time buyers out of the market when they can't compete for entry-level houses.

"A house that's been flipped sells on average for $60,000 more nationwide when it's been rehabbed," Blomquist says. "But we see it as a problem only if flips become too big a part of the market, such as more than 7 or 8 percent of all sales. Nationwide, flips were 5.1 percent of all sales in the third quarter of 2016, but there are some markets, such as Memphis, Tampa, Miami, Las Vegas, Phoenix, New Orleans and Mobile that are getting near or above that danger zone of more than 8 percent."

I think some neighborhoods in DC are absolutely well above that 8% danger zone.

The article also confirms that flippers now use cash at high rates (which puts "regular" consumers at a disadvantage).[/quote]

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