It’s been nearly nine years since the implosion of the housing market and the subsequent recession. Did we learn our lesson? Unfortunately, signs show that maybe we didn’t. A record 31% of foreclosures were grabbed by third-party investors at auction in June 2016. RealtyTrac senior vice president Daren Blomquist calls this alarmingly high number “a sign that speculators may be over-inflating the market.” Meanwhile, seasoned institutional buyers are seeing data that gives them pause, which Blomquist sees as “another red flag.”

Because Juniper Capital is focused on sharing quality business and investment information with our clients and colleagues, we present The Housing Market Is Waving a Red Flag by Michelle Jamrisko for This article addresses the above concerns as well as a few more warnings backed by analytics.

Many believe that Seattle’s real estate market is a unique beast in this jungle. In fact, metro Seattle apartment activity in the second quarter of 2016 showed remarkable strength. Rents surged $64 per unit and the apartment vacancy rate dropped more than one-third of a percent to 3.86%, which is the lowest rate since the local market survey began in 2005.

As a private money lender, our business is to fund smart, secure real estate investments in Seattle and across the Pacific Northwest. We’ve recently had to turn away a few inquiries from inexperienced house flippers. While we always appreciate interest in our services, we stay in business and offer reasonable rates because we focus on high quality investments. Our advice is to be careful out there. Consider your choices and make smart decisions. As Blomquist says, “Real estate is cyclical. It’s not this steady trend upward.”

If you recognize a prime real estate opportunity, give us a call. We are always happy to talk and help you realize investment success.