If we take a look at the major city areas of the United States and their Real Estate markets, a peculiar pattern begins to emerge. We'll see that large hedge funds and overseas investors or buying up the entire prime Real Estate in those areas. The typical man and woman are still failing to pay their rent because they got kicked out of their house several years ago after being foreclosed on.
These large institutional investors and foreign nationals are the driving influence behind our market nowadays. These groups of investors are not thinking about revitalizing run down neighborhoods or remodeling homes. They want something in good areas, which will rent quickly to upper middle class or luxury users. They're looking for a completely turn key solution to their investing demands where they 'd have to put in little to no effort getting the property up to par.
This leaves the locals stuck several years earlier when the market place was slowly moving along. At this point there is still little if any expectation for any sort of a recovery for John and Jane doe, especially the people dwelling in the urban ghetto.
So here we are once more with a market that is being artificially inflated with speculators. Foreigners, hedge funds and banks are virtually purchasing our country. The new American Dream belongs to the wealthy individuals and groups of people. Albeit this does create a new opportunity for those who are smart enough to see it.
What also seems to be going on are owners in the slums inflating their asking prices to absurd amounts thinking that just because they have a piece of Real Estate in an urban area, that it makes them and their property a hot catch. In most instances, when they see that their depreciated piece of Real Estate in the war zone won't sell for $200k and sits on the market for 3 years, they'll finally realize that regretfully, the market's appreciation is not favoring their neighborhood.
I feel especially sorry for those who are dealing with foreclosure and are hoping to sell their property the old fashioned way- with a Realtor and are trying to get what they owe on their over leveraged home. The real tragedy there is that these individuals don't understand that there exist companies and folks that are without a doubt willing to come in and negotiate a reduced mortgage on their behalf and consecutively purchase their home.