The iBuying Impact: Increased Efficiency or Another Housing Bubble?

first_img Previous: Where Income and Affordability Balance Out Next: Re-Examining Manufactured Housing With technology making the homebuying easier than ever, experts believe the practice of buying a home online could lead to “a far more efficient and affordable housing market — or another devastating bubble,” said Karl Smith, former assistant professor of economics at the University of North Carolina’s school of government stated on Bloomberg.“iBuying,” Smith notes, involves firms using algorithms to provide sellers with fixed-price offers on their homes. However, the seller is the one who has all the information, leaving buyers and investors cautious. Algorithms, however, can read disclosures, do market comparisons, evaluate timing, assess nearby rental vacancies and consider a host of other factors to arrive at an estimate of the house’s value, allowing iBuyer firms to give an instant price. According to Smith, around 5% of the homes sold in Phoenix, Arizona, were sold through instant buying last year, and investors own as many as 22,000 houses in the area.As the market slows, these instant sales will become more popular, and more properties could end up in the hands of big investors. As this instant sale technology becomes more popular, “click-to-buy,” may pick up on the other end. “Together, these two technologies could serve as a kind of market-maker: A platform that allows buyers and sellers to find each other,” said Smith. “As an asset that can be easily bought and sold at known prices, real estate would be coveted by investors, who are willing to accept a lower return on their investment in exchange for the convenience of easy trading.”With houses as easy to buy and sell as stocks, home prices are likely to rise, but this is dependent on the nation’s ability to build more housing stock. “In either case, emerging technology has the potential to radically transform the economics of housing,” said Smith. “It could lead to an expansion of supply, making housing more affordable; or it could result in the financialization of housing, the end of the owner-occupied era and new source of economic instability. Policy makers will have to keep an eye out for which scenario is emerging and what if anything they can do about it.” The iBuying Impact: Increased Efficiency or Another Housing Bubble? The Best Markets For Residential Property Investors 2 days ago Related Articles Share Save Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Subscribe Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Tagged with: Homebuyers Investment Sales Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post in Daily Dose, Featured, Investment, Market Studies, News Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Homebuyers Investment Sales 2019-07-02 Seth Welborn About Author: Seth Welborn July 2, 2019 926 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / The iBuying Impact: Increased Efficiency or Another Housing Bubble? Sign up for DS News Daily Demand Propels Home Prices Upward 2 days agolast_img read more

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Smith brothers are triple winners at Algona

first_imgBy Greg Grabianowski ALGONA, Iowa (June 21) – Daniel, David and Dustin Smith of the Smith brothers racing family each won a feature to highlight a night of dirt track racing at Algona Raceway on Saturday. Daniel was the first of the siblings to capture a victory as he won the IMCA Sunoco Hobby Stock race after starting on the outside of the first row. He grabbed the lead early and only a pair of caution flags delayed his trip into the winners’ circle. For the fourth time this season at Algona Raceway, David Smith captured the IMCA Sunoco Stock Car feature. Smith patiently watched David and Bruce Wickman lead early he as came from the inside of the fourth row. The IMCA Xtreme Motor Sports Modified feature went to Dustin Smith, who won his third feature of the year at the track. Mike Carlson was the early leader in the race before a caution came out on lap number six.Dustin grabbed the lead off the restart and only a red flag when Tyler Heetland’s car got upside down slowed his journey into the winner’s circle. Jake Simpson was the winner of a marathon Karl Chevrolet Northern SportMod feature. Jay DeVries paced the Mach-1 Sport Compacts.last_img read more

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