Investors accounted for 20 percent of total residential sales in April, down from 23 percent in February and 21 percent in March according to the Realtors® Confidence Index. Investors have reported that in many cases they can obtain a positive cash flow converting properties to rental units, or obtain a resale after making improvements.
Realtors® have been reporting that the market is able to absorb the large number of distressed properties coming onto the market. In some regions Realtors® report that the market would clear additional properties if available. Approximately 68 percent of investors pay cash.
Additional information on a variety of topics related to current residential market conditions may be found here.
Jed Smith is Managing Director, Quantitative Research with the National Association of Realtors®. He has worked on real estate issues for the past 20 years, providing input on a variety of housing, commercial real estate, tax, and planning issues. Recently he has been involved in several international studies.