Wednesday, February 8, 2012
Investors Active in Residential Real Estate Market
The December 2011 Realtors Confidence Index survey reports that investors continue to make up a significant share of the existing home sales. Prices in some markets are reported to have declined over the past three years to a point where investors can obtain a positive cash flow after making modest improvements. A number of Realtors® reported that investors are effectively shutting first time buyers out of the market by making all cash offers. This is creating some additional pent-up demand which may become evident later this year. Combine this scenario with those of today's dramatically declining inventory and the increasingly high hurdles that buyers are having to clear to obtain financing and one can understand the frustration on both home buyers' and sellers' faces. Every ebb, has a victor and at the moment, it is indeed the investor.
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