Overnight News: Why are hedge funds still buying rental properties at the top of the market?

As noted below, hedge funds are still buy-and-hold buyers. Do not ask me why. We have not worked on the buyer side of an investment deal in six or seven years. My style of single-family property has been upside down for a long time.

But we sell to them, happily, when we hit their buy box, which we almost always do. Over the past few years, you can track them as they went from bargain hunters at 85% of list to retail shoppers at list or above. I can’t imagine they’re picking off very many right now, given what owner-occupants are willing to pay, but, as before, I’m not seeing their upside, anyway.

For a reason why, take the satellite view of Bumstead, AZ – and look at all that empty dirt. Zoom out: There’s lots more. All that land and much to the west of it will be houses someday.

Could it be that the hedge funds are putting a corner on tulip bulbs?

In other news:

CNBC: April existing home sales drop, marking three straight months of declines.

Bloomberg.com: Mega Landlords Are Snapping Up Zillow Homes Before the Public Can See Them. Is this opaque to you? Are they buying at retail, off the MLS? Or are the iBuyers wholesaling inventory at precisely the wrong time? And what would be the point of that, anyway – buy high, sell even lower?

Housing Wire: Home shoppers aren’t the only ones using Zillow. I know a lady who meanders neighborhoods in Google Streetview.

Daniel Greenfield: San Fran Legalized Shoplifting. Now Seniors Have No Pharmacies.

Angelo Codevilla: Regime vs. Regime.

Julie Kelly: The January 6 Commission Is All About Revenge.

Karol Markowicz: Back from Florida—To Stay? A lifelong New Yorker wonders if the city can still be home.