Investors looking for yield are acquiring more low-priced homes to fill growing rental demand, according to the latest HousingPulse Tracking Survey from Campbell/Inside Mortgage Finance. The survey shows that investors now dominate discount housing markets, and that first-time homebuyers are fading in favor of short-term living arrangements. In fact, 61.6% of properties purchased by investors in October are slated to be rented out at some point. The report notes that investor purchases represented 22.3% of all closed transactions in October. That compares to 19.6% in July, which is the last time the survey recorded this type of information. Campbell/Inside Mortgage Finance says the upswing in investor demand for real-estate owned properties comes at a time when more families are turning to rentals. Average prices for REOs in October hit $101,100. This low price allows investors to grab the property, revamp it and turn it into a rental unit. While investors are absorbing more distressed properties, first-time homebuyers are becoming less active in the lower-priced market. Campbell/Inside Mortgage Finance bases its conclusions on feedback from 2,500 real estate agents. Write to Kerri Panchuk.
Investor buying spurred by demand for rentals
Most Popular Articles
Latest Articles
Reverse mortgages seen as a path forward for lenders
Leaders at Guild Mortgage and Guaranteed Rate explained some of their approaches to the reverse mortgage business during The Gathering.
-
Blend receives $150M infusion from Haveli Investments
-
Michigan attorney general reissues reverse mortgage consumer alert
-
eXp Realty makes changes to its executive team
-
Housing affordability dipped in March: First American
-
Title insurance executives are confident the Biden proposals won’t come to much