The Real Estate Resuscitation Leans toward the Rich Man

The new recovery is different in the reality that it is primarily affecting those within higher end areas. This time around, the recovery is prejudiced and leaving everyone else in the dark whilst the wealthy are enjoying this new market uptick.

If we have a glance at the major city regions of the United States and their Real Estate markets, a peculiar pattern starts 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 making every effort 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 intrigued by rejuvenating run down neighborhoods or remodeling homes. They want something in good areas, which will rent quickly to upper middle class or high end users. They're looking for a completely turn key solution to their investing demands where they 'd have to invest 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 chance for any form of a recovery for John and Jane Doe, especially the folks living in the ghetto.

So here we are once again with a market that is being artificially inflated with speculators. Foreigners, hedge funds and banks are practically 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 appears to be taking place are owners in the ghetto 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 combat zone won't sell for $200k and sits on the market for 3 years, they'll finally realize that regretfully, the marketplace'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 house. The real tragedy there is that these individuals have no idea that there exist companies and folks that are actually willing to come in and negotiate a reduced mortgage on their behalf and consecutively buy their house.