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.