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“There are so many fewer cash buyers,” Little says. “Prices are floating up to where investors don’t perceive it as the screaming deal they did a year ago. It allows (traditional buyers) a better crack at getting into the mix.”

Pat Shea, president of a real estate company in Sacramento, says many buyers have been waiting for a chance to take advantage of prices and interest rates that are still relatively affordable.

Real estate agents and homebuilders have been counting on these so-called “boomerang” or “recovery” buyers to help bolster sales in the next few years.

“These people owned homes before,” Shea says. “They want to own homes again. There will be hundreds of buyers coming back.”

©2013 The Sacramento Bee (Sacramento, Calif.)
Distributed by MCT Information Services

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