It wasn't so long ago that loads of Americans were taking massive short-term loans from banks or private lenders, purchasing a mediocre home at a discounted price, fixing it up a bit, and selling it again at a higher price, all over the course of a few short months. The trend marked the buildup to the 2008 financial crisis, "a potent symbol of the real-estate market's excess," as The Wall Street Journal puts it.
Well, thanks to "skyrocketing home prices, venture-backed startups, and Wall Street cash," the home flippers are back. The number of investors who flipped a house during the first nine months of 2016 reached the highest level since 2007. Big banks like Wells Fargo, J.P. Morgan, and Goldman Sachs have begun offering credit lines — anywhere from $5 million to $150 million — to companies that give out loans to these high-risk investors. The market was expected to reach some $48 billion as of December 2016, The Journal reports.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
Today's political cartoons - December 22, 2024Cartoons Sunday's cartoons - the long and short of it, trigger finger, and more
-
5 hilariously spirited cartoons about the spirit of ChristmasCartoons Artists take on excuses, pardons, and more
-
Inside the house of AssadThe Explainer Bashar al-Assad and his father, Hafez, ruled Syria for more than half a century but how did one family achieve and maintain power?
-
Judges block $25B Kroger-Albertsons mergerSpeed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
-
Rupert Murdoch loses 'Succession' court battleSpeed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
-
Bitcoin surges above $100k in post-election rallySpeed Read Investors are betting that the incoming Trump administration will embrace crypto
-
Enron mystery: 'sick joke' or serious revival?Speed Read 23 years after its bankruptcy filing, the Texas energy firm has announced its resurrection
-
US charges Indian tycoon with bribery, fraudSpeed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
-
Boeing machinists approve contract, end strikeSpeed Read The company's largest union approved the new contract offer, ending a seven-week strike
-
US economy still strong in final preelection reportSpeed Read It grew at a solid 2.8% annual rate from July through September
-
Boeing machinists reject deal, continue strikeSpeed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
