Something is going on. I can't figure it out. Maybe you can help.
I use to buy home at the court room steps and flip them. We would purchase them at a 70 - 80 % of comp value. Put them on the market and make some cash.
BUT THIS IS NOT WORKING ANY MORE.
Today the homes at the court room steps are selling for and even above the comp values. People seem not to care what the price is. It's getting crazy. I've heard rumors that there are billions of dollars in the market scooping up all the homes and turning them into rentals.
There are three price levels, auction, wholesale and retail. If flippers are buying at the court room steps are paying auction prices, then what is the retail price? 30% more? It seems that it is and our current method of determining value based on prior sales is wrong.
So 2+2 really equals 6 in today's market.
If this continues I expect to see lines and lotteries at new home sales.