Real Wealth Network's Fettke: Hedge Funds Are Biggest Risk to Housing Recovery

Wednesday, 29 May 2013 07:53 AM

By Glenn J. Kalinoski and Kathleen Walter

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Investors represent the biggest risk to derailing the housing recovery, said Kathy Fettke, founder and CEO of Real Wealth Network, a California real estate services and consulting company.

"[This includes] big hedge funds coming in, not really understanding values, paying too much, driving prices up, that could create another bubble and then another crash," Fettke said in an exclusive interview with Newsmax TV. (Hedge funds are commonly defined as an investing group usually in the form of a limited partnership that employs speculative techniques in the hope of obtaining large capital gains.)

"If we could just get the first-time buyers back in the market: they're having a hard time competing. They're the ones who are going to be able to gauge value a little bit better because they'll know what they can and cannot afford."

Watch our exclusive video. Story continues below.



She said the markets Wall Street has invested in include Phoenix, Las Vegas, parts of California that include Riverside and Sacramento as well as sections of Florida.

Editor's Note: Billionaires Dump Stocks. Prepare for the Unthinkable.

"There' s just been too much investor activity and we're seeing prices go up as much as 2 percent every month, even more than that," she said.

She also cited a group of investors she spoke with in the Sacramento area.

"One was an old-time real estate agent and investor," Fettke said. "She knows the market. She knows what she's doing. And she confessed: 'I know I'm paying too much for a property, but I'm doing it anyway because I'm afraid there won't be any left,'" she said.

"When we are driven by fear, it doesn’t usually work. There will always be more property out there, maybe just not right now. One way you can tell if you're overpaying is the average home price needs to be no more than three to four times the average income."

She also commented on some banks that are not foreclosing.

"They've sold the notes, keeping those homeowners in their homes and maybe modifying the loans," she said. "What we thought was this big shadow inventory isn't really going to hit in those areas. That kind of surprised a lot of people."

Editor's Note: Billionaires Dump Stocks. Prepare for the Unthinkable.

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved