Zillow has listed 93% of the hundreds of Phoenix homes it owns at a loss

Re:Zillow has listed 93% of the hundreds of Phoenix homes it... by space_fountain on Sunday October 31, 2021 @05:05PM (#29060428)

I’m not an economist but it feels to me like more most be going on. Capital is flowing into real estate because the people investing feel that they don’t have better places to put it. The fed is struggling to get capital into the places that would lift employment, like new buildings, infrastructure, new business formation, and instead a lot of that money is going to bid things up

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Re:Zillow has listed 93% of the hundreds of Phoenix homes it... by PaulDavisThe1st on Sunday October 31, 2021 @06:31PM (#29061104)

I still am not seeing enough commentary about how we are currently at more-or-less peak Boomer retirement. There are a metric shit-ton(ne) of people who owned a "family home" for long enough to own it outright, have the seen the price climb, and are selling out and moving on.

But Paul Davis, First of His Name, you cry, that means someone is still buying those ex-Boomer family homes!

Why yes, yes it does. But those retiring boomers, in great numbers and armed with (relative) boatloads of cash, are moving to places that they would not have settled in before reaching this stage of life. 20-30 years ago, their money would have sloshed around inside the places they already lived, as they perhaps needed 1 more or 1 less bedroom. [0]

But now, they are on the move. Bend, Santa Fe, Bellingham, Ithaca ... many, many communities seeing huge influxes of cash buyers that would not have happened before.

I'm sure there are many other forces at work in today's crazy residential real estate market, some of them possibly larger/more important. But I think that this time period, right in the middle of the Boomer retirement wave, is also affected by this too.

Disclaimer: I resemble the above remarks.

[0] EDIT: also, as noted by others here, some of the buyers of those homes are not in any way "other people buying family homes" but investment/financial service corporations.

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Re:Zillow has listed 93% of the hundreds of Phoenix homes it... by esoterica on Sunday October 31, 2021 @05:26PM (#29060608)

That just falls under interest rates. Yields are down in every asset class because of the low rate environment.

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