Yet the Press Cheers Rise in Land Costs
Behind the Rise in House Prices, Wall Street Buyers
Wall Street played a central role in the last housing boom by supplying easy mortgage financing. Now, investment companies have swooped in, buying thousands of houses in the same areas where the financial bust hit hardest. This 2013 article is from The New York Times, June 3.
bY Nathaniel PopperLarge investment firms have spent billions of dollars over the last year buying homes in some of the nation’s most depressed markets. The influx has been so great, and the resulting price gains so big, that ordinary buyers are feeling squeezed out. Some are already wondering if prices will slump anew if the big money stops flowing.
Nationwide, 68 percent of the damaged homes sold in April went to investors, and only 19 percent to first-time home buyers.
Despite the recent gains, housing prices remain well below their precrisis highs. In Riverside, for example, home values are still down more than 40 percent from their 2006 records.
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JJS: Tho’ this news is not new -- remember us running it here two months ago? -- it is from the NYT, a source many take seriously. What the source left out and what the pros who were cited left out is that if society were to recover the values it generates -- which are those values that attach to land -- then there’d be no value in land leftover to attract speculators and there’d be no boom followed by bust. Rather than going to speculators -- whether Wall Street or selling-out homeowners -- those land values would go to all members of society equitably.
Editor Jeffery J. Smith runs the Forum on Geonomics and helped prepare a course for the UN on geonomics. To take the “Land Rights” course, click here .
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