OpinionIndustry News

Who wins in a real estate market downturn

Perspective: Many lose, but some win when housing market slows

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If the housing market turns south, a lot of people will lose: homeowners, investors and real estate professionals, to name a few. But a lot of people would benefit from a slower real estate market. Inman News has compiled a list of beneficiaries: 1. Foreclosure and pre-foreclosure investors: Marla Webb, a senior advisor to the Foreclosure Economic Advisory Council, a non-profit group affiliated with the for-profit Foreclosure.com, said experienced foreclosure investors and investment groups who are wise to long-term real estate cycles can profit in a downturn. "The folks who do best are those who are already engaged in foreclosure investing – people who are building a portfolio. It's not those who like to buy and flip," she said. "Much of the hot markets have been heated up by people who don't have a real understanding of long-term management aspects of real estate. People who are speculators jump in and out." Real estate speculators can boost a booming market higher and, simi...