As the real estate market makes a joyous recovery, the media is ablaze with evidence that investment buyers are retreating—or are they?
While many institutional and cash buyers flocked to the market last year, snatching up distressed properties, erasing shadow inventory and driving up prices, we are currently seeing a decrease in interest from these “get rich” investors.
Investors accounted for 20.2 percent of home purchases in May—still high, but down from a peak of 23.1 percent reached in February, according to the Campbell/Inside Mortgage Finance survey of real estate conditions.
Reports from the National Association of REALTORS® show a decline in foreign buyers — a big source of investors in U.S. single family homes and condominiums, and a recent release by RealtyTrac show that hedge fund investors are slowing as well.
However, while last year’s house-hungry investors seem to be packing away their cutlery, a new breed of investors are approaching the table. These conservative, or “value,” investors are purchasing properties in cities that are showing sustainable promise.
Copyright© 2014 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.
Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com