A record 31 percent of foreclosures were gobbled up by third-party investors at auction in June, which has led some people, such as RealtyTrac senior vice president Daren Blomquist, to worry the housing market is waving a red flag, Bloomberg reports.
With only 8 percent of all home sales coming from foreclosure auctions in June, which was the lowest total since August 2006, third-party investors’ share of these shrinking sales is increasing.
The overall housing market looks very strong but this trend of non-professional third party investors is an early warning signal that shouldn’t be ignored.
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