Investor buyers continue to be active in the residential market. About 20 percent of REALTORS® who responded to a monthly survey about their last sale in January 2014 reported that the sale was made to a buyer buying for investment purposes.
See the January REALTORS® Confidence Index Survey report for more information.
Investors remain active in the existing home sales residential market. About 19 percent of REALTOR® respondents reported a sale to an investor in November 2013. The share of investors has generally stayed at about this level since 2008. Cash sales account for about 70 percent of purchases made by investors, who are frequently mentioned as winning in bidding against first time buyers, who generally need to obtain a mortgage.
As the traditional summer vacation season wrapped up, it became easier to focus on the economic performance over the first half of the year. However, the task became an exercise in reading fortune cookies given the many changes in the economy, the markets, and the legislative environment.
The share of distressed properties on the market continued to decline in April. Approximately 18 percent of REALTORS® who responded to the April REALTORS® Confidence Index Survey and who reported a sale sold a distressed property, substantially down from levels a few years ago.
REALTORS® continued to report strong demand for REOs from investors who reportedly win against first-time homebuyers. About 37 percent of reported sales made to investors were distressed properties, compared to about 17 percent in the case of first-time homebuyers.
- 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.