Here’s what you need to know about iBuyers in our Phoenix market.

If you’ve been paying attention to the Phoenix real estate market, you may have noticed a surge in iBuyers. Why is that? Today, I want to answer that question and explain the iBuyer situation in our current market. 

So why are hedge funds investing in real estate in the first place? Conventional wisdom says they put their excess money into stocks, but that changed when the market crashed in 2008 and 2009. Companies were sitting on huge piles of cash, and real estate was so cheap, it was too good of a deal to pass up. Since then, companies have realized the power of investing in real estate. We’ve seen nothing but appreciation since the crash in 2008, so their investments have paid off so far; why would they stop now? 

This is contributing to a supply-side issue in our market that is also related to the 2008 crash. When everything crashed, builders were left in a tough position since ...