Home Page Our Homes For Sale New Listings/Price Chgs Contact Allen or Barbara Barbara's Blog

My New Blog

Open Field
October 14th, 2014 9:45 AM

Conventional home buyers, who were often shoved aside by investors with large sums of cash, are finding a foothold in the housing market once again.  As prices continue to rise and discounted properties are harder to come by, investors are drastically pulling back on their buying activity, opening up the field for everyday buyers.

Smaller investors are pulling back, too.  The number of home flips, done more by investors who are not looking to have large portfolios of properties, fell by 2% in the past year. 

With investor sales slowing, traditional home buyers are picking up the slack.  Pending home sales showed the largest gain since April of 2010.  However, tight inventory remains an issue.  New construction is still lagging behind demand.  And the big investors who came into residential real estate beginning in 2011 did so with a "buy-and-hold" strategy.  They have branched into the long term single-family rentals, which are much in demand in the current market.

The negative of the increase in long term rentals is that it gives  unease to buyers, who see changes to neighborhoods with more temporaty tenants, instead of long term residential owners.  The care and condition of the properties, especially with absentee owners in another state or country, can have an adverse affect on home values. 

But with inventory low, as well as mortgage rates, some buyers are willing to put the owner-occucpancy issue asside in order to get just the home they want.  The real estate market will continue to change and give unique challenges with each one.  It is up to the buyer to determine when and what changes best meet their individual needs.

Posted in:General
Posted by Barbara Doeringer on October 14th, 2014 9:45 AMPost a Comment

Subscribe to this blog


My Favorite Blogs:

Sites That Link to This Blog: