Real Estate Investing

Posted by Juanita Limes on Monday, March 31st, 2014 at 9:25am.    1107 Views

Real Estate Investing Down, But Hot Market Otherwise

Investors, have played an important part in the recent housing market's recovery, but shrinking as a percentage of home sales overall. That's a really important indicator that now is the time to buy if you're looking for a primary single family residence. With rising national average home prices (one gauge says they rose 13.4% in 2013), it's growing more difficult to land an enticing deal.

 "Not only are fewer deals available, but once found, the deals are not as sweet: as supplies of distressed homes contract, the discount has narrowed," economists at IHS Global Insight wrote in a Thursday research note.

NAR (National Association of Realtors) spokesman Walter Molony gave an early mention that indicated investment property composed about 22% of home sales last year, down from 24% in 2012 and 27% in 2011. A dip of 2% but one that speaks loudly. First time buyers and second time "move on up" buyers should consider getting it in gear and acting now.

Think of it this way, if a buyer is out there looking with only the perspective of making a good return vs. looking for a home for family of three with one on the way, it becomes clearer when gauging this important shift in trends. 

"We think a lot of the big pop in housing has gone out," Stephen Schwarzman, chief executive of Blackstone Group, which has bought at least $7 billion worth of houses, said Wednesday on CNBC. "For us an exposure in the $7-to-$8 billion range is big enough."

Indeed NAR, released data last Thursday that the lower priced and properties (included distressed and foreclosed homes) that investors have a penchant for are seeing a declining trend in sales. Sales of single-family existing homes priced between $100,000 and $250,000 (this range includes the median price of $189,200) fell 7.2% in February from the year-earlier period. Meanwhile, sales of homes between $250,000 and $500,000 rose 1.9% over the past year.

Affordability for investors seems to have had an impact on overall sales, but buyers are making a more energetic scramble as we see less inventory with those rising prices, get your home while it's still hot. ( I personally think a little of the slow down has to do with bad weather across the nation lately, but hey, it's sunny out today here in Ohio, let's go see some houses!)

 

Juanita Limes - Your Greater Dayton Area Ohio Realtor - Give me a shout for all your real estate needs,

937-776-6903 or just email me.

5 Responses to "Real Estate Investing"

Greg Hancock wrote: We'd have to agree with you about the weather dear.

Posted on Monday, March 31st, 2014 at 12:15pm.

Greg Hancock wrote: Juanita, nailed it again. Your 25+ years of experience serves not only your clients but your fellow Realtors as well with your keen market insights and I for one (I'm sure I speak for many) and grateful for agents with tenure like yours to share with the rest of us. Thanks!

Keep it coming dear!

Posted on Monday, March 31st, 2014 at 12:16pm.

Archie wrote: Have to agree with this, and yes, ha, about the weather too, but about not finding the sweet deals like i used too. though, i wish you had been my realtor when i was looking at investment property bought a few last couple of years but hadsome unexpected headaches.

Posted on Monday, March 31st, 2014 at 12:26pm.

sylvia wrote: my husband and i were buying a few here and there, and with archie all the way. we stopped looking for "sweet deals" about 6 months ago, but want more investments in the future... we stil keep one eye out though, so let us know if you spot something around huber heights? i assume you have our email, thanks!

Posted on Monday, March 31st, 2014 at 12:58pm.

Juanita Limes wrote: Sylvia, Archie, thanks to both of you, yes please do, next time try me, I have over 25+ years of experience sales in real estate. Sylvia, I'm going to send you an email, just describe what's on your wish list for me and I'll send you listings. Have a wonderful spring both of you!

Posted on Monday, March 31st, 2014 at 1:06pm.

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