HOUSINGNEWS REPORT
LEAD ARTICLE
Evidence of strong investor confidence in the housing market shows up in the share of home flippers taking out loans to purchase investment properties, which increased to a nine-year high in the first quarter of 2017. Hartman, who also provides hard money financing to home flippers, said a flood of capital is making that space much more competitive. “There is yield compression in the hard money lending space. I used to get 12 percent and two points, but I rarely get that,” said Hartman, who lives in Las Vegas. “They (flippers) just keep paying me back too quickly, and there is so much money funding deals they have no trouble finding money to do deals.” Meanwhile foreclosure activity in April dropped to the lowest level since November 2005, and the share of
seriously underwater homeowners at the end of Q1 2017 dropped by 1.2 million compared to a year ago and is now down by more than 7 million since peaking in Q2 2012. Even battered Rust Belt real estate markets — many of which helped Trump win the presidential election — are experiencing a surging real estate
market, although local experts don’t always attribute that surge solely to the new president. “It’s not Dallas here. It’s not Boulder or Denver, but it’s a very active market,” said Brian Stark, a real estate investor and host of a real estate-focused radio talk show in Cleveland, Ohio.
We’ve certainly seen what the stock market has seen, the Trump Bump. Since the election people have rushed into the market. I can feel it. We don’t have enough inventory to sell to investors.”
JASON HARTMAN FOUNDER AND CEO PLATINUM PROPERTIES NETWORK LAS VEGAS, NEVADA
U.S. MEDIAN HOME PRICES YOY PCT CHANGE
MEDIAN SALE PRICE
20.0%
$250,000
15.0%
$200,000
10.0%
5.0%
$150,000
0.0%
$100,000
-5.0%
-10.0%
$50,000
-15.0%
-20.0%
$0
2
JULY 2017 | ATTOM DATA SOLUTIONS
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