Wall Street investment firms are feverishly grabbing single-family homes, the Washington Post reports. Wall Street's been buzzing about this trade for a while. Institutional investors are taking advantage of cheap inventory, combined with our low interest rate environment, to make double digit returns from renting or re-selling homes. As a result, markets in some places are recovering rapidly — Phoenix, for example, has seen single-family home prices rise 23% in the past year. There are questions as to whether this situation is good for the average consumer. If prices rise while jobless rates remain high, it could take longer for the "end-user" of a property to raise the cash to afford a home. From WaPo: “Clearly the investors are moving markets in some places,” said Dean Baker, co-director of the Center for Economic and Policy Research and author of a popular housing blog. “In some markets at the bottom end, you are looking at 30 or 40 percent gains ...
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