Builders MUST Sell: PREDATORY BUYING? Housing Market Update

Recent housing market activity has many builders concerned about predatory buying. Predatory buying is defined as when a person (or group of people) buys a home primarily for the purpose of reselling it for a profit.


While this activity does occur in the housing market, it is not common. The National Association of Home Builders (NAHB) believes that in order to prevent predatory buying from occurring, builders must be able to sell homes.


Predatory buying has been a concern in the housing market for some time. In 2007, the FBI released a report that showed that 64 percent of home buyers in the United States are motivated by reasons other than need, such as wanting to live in the home they are buying or wanting to make a quick profit.

This report showed that predatory buying was a problem in the housing market and that builders needed to be able to sell homes in order to prevent it from happening.

Since 2007, predatory buying has not been a problem that has been shown

Read More: Has the Minnesota Housing Market PEAKED??

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