Investment Buyers in 2012

  • The sales price for investment properties rose for the second consecutive year. The share of investment buyers who paid all cash for their home purchase remained steady from 2011 at 49 percent.
  • Investors in 2012 remained active in buying distressed properties that were on the market. Twenty-four percent of investment property buyers purchased a home in foreclosure, and 23 percent purchased a short sale property.
  • Similar to vacation property buyers, this is a slight decline, which is reflective of fewer distressed homes on the market available for purchase.
  • The typical investment buyer plans to own their investment home for eight years.

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Jessica Lautz, Managing Director, Survey Research and Communications

Jessica Lautz is the Managing Director of Survey Research and Communications. Jessica analyzes data and writes annual studies such as the Member Profile, the Profile of Home Buyers and Sellers, and the Commercial Member Profile.

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  1. All this cheap housing and still a lack of first time home buyers.

    -DTI is too high

    -Liquid assets soft

    Now housing inflation is rising because of the crazy tear up in prices due to low inventory. The market is going to DTI out millions of Americans when the other side of housing inflation ( Mortgage rates rise)

    The economy doesn’t have the capacity to create higher wages and when home prices rise faster than incomes … then mortgage rates follow.. Ouch!

  2. 24% of all home purchasers being investors an nearly half of those paying all cash does not sound much like a recovered housing market, or an opportunity for most folks o buy a home.