The Amazon Effect is Coming to Home Buying and Selling.

We expect to buy and sell everything in an instant now. Why would selling a home be any different?


This live stunt will no doubt generate attention during Super Bowl Sunday. Its interestingness, as always, is in the eye of the beholder. Depending on what pattern you bring to it, what you are left with is either very positive or very negative.

For many, what's worth thinking about will be a quick and frictionless way to sell your home. Others who have been following the story about the housing crisis in America and Wall St. becoming a leading buyer of homes in the single-family market will be disturbed by the negative consequences of this. According to a report from Stateline (https://lnkd.in/gMqfEq8u), nearly 22 percent of single-family home purchases were made by corporate entities within the past year. CNBC claims (https://lnkd.in/gvefrd3A) that by 2030, institutional investors will own nearly 40 percent of the nation’s single-family rentals.

A quick way to sell to an all-cash buyer sounds great. But thinking about it leads you to understand how this works. As Wall St. continues to buy all the inventory in a given neighborhood and then intentionally overpaying on the last one, causing the value of the homes in the area to be artificially inflated. Then they can charge a higher price for all the remaining inventory.

It’s like controlling a very small market (one neighborhood) which is price fixing. And then repeating it in many neighborhoods.

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