Speculators Risk 'Bubble Bursting' : Lereah
The CBS News site has a story on more speculators being herded into the market. "Darryl Wortham says he's not speculating. 'I’m not looking to get a 50 percent return out in Vegas. I'm looking at 5 percent, 10 percent.'"
"Wortham, a tech project manager in California, has bought three houses this year in Georgia. 'So I bought all the properties really sight unseen.' That's right, he bought them online, through an Internet investment group."
"'You see they have all the pictures up here, so it makes it real easy to make the buy,' he says. 'You come down and see the 'purchase' button. That's all you have to do.' Asked if he's concerned about a housing bubble, Wnuk says: 'At least there won't be a depression in real estate.'"
This guy is changing his message every day. "'The second home market is surging,' says David LeReah, chief economist with the NAR. In some red-hot markets, he says, speculators are now driving up housing prices."
"'So there certainly is some risk,' says LeReah. 'There are certainly some pockets where they may be more vulnerable to a price bubble bursting than other areas of the country because of the speculative element.'"