Level Of Speculation Unknown
The Seattle Times has a story on investors turning from stocks to property. Then the writer reveals that has already occurred. "Last year, speculators went into overdrive in Las Vegas, Phoenix, many parts of California and southern Florida, buying perhaps 15 percent or more of homes sold."
"In some subdivisions, up to 60 percent of the owners were investors, which was leaving the regular homeowners in an uncomfortable situation. The market became flooded with rentals."
"In South Florida, such restrictions generally don't exist. 'We're seeing three times as many buyers as there are units,' said Jack McCabe, who says exuberant investors create artificial demand. 'Three-hundred- and 400-unit buildings sell out in a weekend. In my very, very conservative estimate, 40 percent of these sales are speculator-driven, and in some projects, it's as high as 80 percent.'"
"Overall, the speculation picture is muddy because there is no single definition of 'investor.'"