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WSHazel

(549 posts)

6. PE Buyers are struggling

Reply to enid602 (Reply #2)

Wed Jun 25, 2025, 02:37 PM

Jun 25

PE firms flooded the single family home market because the Trump tax bill made it cheaper for PE to buy a house than it was for an individual to do it. Now PE has a problem, because there are not enough buyers and the PE firms are sitting on a lot of inventory. I am not sure how this will play out.

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Highlight:

Sales of new homes tanked in May, pushing supply up to a 3-year high [View all] mahatmakanejeeves Jun 25 OP

It cannot be explained as only due to mortgage rates, which haven't changed enough. . . . nt Bernardo de La Paz Jun 25 #1

flippers enid602 Jun 25 #2

PE Buyers are struggling WSHazel Jun 25 #6

Doesn't help that the average home price is somewhere around $300,000. mwmisses4289 Jun 25 #3

I sold my house in preparation for moving out of the country sdfernando Jun 25 #11

People know Trump's tariff taxes haven't fully hit yet. Mawspam2 Jun 25 #4

Homes are overpriced WSHazel Jun 25 #5

They have been overpriced for fifty years. valleyrogue Jun 25 #13

Maybe I will be able to afford a house, after all. intheflow Jun 25 #7

and here I thought no sales means the price is too high and should be lowered lol nt msongs Jun 25 #8

Greatification Is HERE. Don't mind our noise and dust. BurnDoubt Jun 25 #9

A 7% rate is not all that high, historically speaking RussBLib Jun 25 #10

What it is? Jughead Jun 25 #12

Higher taxes and sky high insurance are putting leftyladyfrommo Jun 25 #14