From the article sourced above:
The danger is if home sales fall off by bigger amounts than analysts are forecasting.
That could cause investors, who have boosted sales with their purchases of rental properties and vacation homes, to start dumping homes onto the market, further depressing prices.
First off, why are these two sentences even interjected? This is total speculation. These passages only verify that "danger" is essential to newswriting. It's ashame too because the article to that point had been fairly reasoned & supported. Beyond speculation, it's illogical to assume that seasoned investors--or even investors with half a brain--would dump their recently-purchased investment properties on the market when values are somewhat depressed. If they have to "dump" them, then that would lead me to believe they are "holding" them in the first place. If they are holding them for rental income, then they will not want to dump them because if interest rates are truly holding sales prices down, then they will certainly force more folks into renting. Now, if they bought a property they couldn't afford with intentions of flipping the property for a quick profit, then yes, there could be a problem. But to suggest that this "dumping" of investment properties might be widespread enough to have such a bold impact on the entire housing market is, if nothing else, premature.
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