Is the market being eaten up by banks?

[Emma]

I have a friend who has been looking to buy a house for 6 months now. Every time she and her husband put in a bid, they get outbid and it is not by a small amount, but 25k plus. The one house they offered to pay only 8k less than the asking price and someone outbid them with 40k over. What is going on right now? It just doesn't seem normal. They have been outbid like this with 9 different houses. 

[Kuro]

Do you know that they were outbid by banks? Unless the banks see a real estate boom coming soon I can't seem to figure out why they would do that

[Sophia]

I think banks only target areas like NYC. I can't see banks being a huge factor in random smaller areas around the US. The housing market is a lot busier in the late spring and summer months, always has been. The willingness to pay over like that is not unheard of. I think it is being pushed a bit more right now because of market panic though. 

[James]

Large investment organizations are buying up the single family real-estate. I am a member of a few private REITs that are buying up single family homes all over the south east. There are plenty more operating in other parts of the country. 

Also with the low interest rates still it tends to inflate asset prices.

Home builders have slowed in building smaller homes because the profit margins are no good. 

Inventory is at all time lows and it is largely a sellers a market across the nation right now. 

We have started to see a little bit of softening in our local market with average listed days started to head back up. 

There is just little supply and yes the investment banks are playing in the same arena as consumer buyers. It is making things tough out there.