Yes, we copied that title directly from the Real Deal South Florida and it may seem like a pretty idiotic headline, but if you read the full story it actually has some relevancy to all of us down here in the Sunshine State – here is a quick quote from the full story:
An investment firm just bought a newly built Palm Beach house for $6 million — more than $3 million more than what its previous owner paid just two years ago. An affiliate of NISA, a Missouri-based investment management firm with $132 billion under its control, was the purchaser of 256 Palmo Way, according to Palm Beach County records.
So then what’s the big news? Not much at all, but depending how you want to look at it, prices are going bananas in South Florida once again and also we’re seeing private equity and other non-traditional real estate investment firms buying batshit crazy. We’ve seen this before and we know what’s causing it now, the only question is when does it all end. If you follow the capital markets all you have to do is watch and wait to see when the Fed starts to raise interest rates and puts an end to their cheap money printing they’ve ben engaged in. The question then becomes to we see a collapse in the market or a leveling off?