Real Estate Investors Out, Home Buyers In

As the economy has recovered over the past two years, low price home sales (under $95,000) were the name of the game.  Investors abounded, snatching up these properties while they could, and fueling the recovery process.

In short, the investors did their job; but is it time for home buyers to take over?

According to the Real Estate Economy Watch, the discount priced homes were able to attract enough buyers to drive prices up a full 31.8% from 2011 - an impressive feat.  

Over this time, we worked with many frustrated home buyers who found themselves losing multi-offer situations to all-cash investors, developers, and rehabbers. As the investors competed with one another and conventional home buyers, supply shrank and prices climbed. 

While low tier home price gains were at 3.7% a year ago, they have now slowed to 1.2%.  This stabilization could be a trigger for first time and move-up homebuyers to engage in the market once more.

The Clear Capital home report released at the end of March indicates the start of a lessening investor pool, while the rate of home price growth begins to outstrip the rate of rent.

Clear Capital Report

Will investors exit en masse?  Hardly.  "Good deals at the micro market level will persist well into 2014," said the Clear Capital report.  A less appealing market for investors does open the door for more home buyers.

Spring is a great time for home buyers to begin engaging in the market, especially with 2014 anticipated to be a thriving year for the housing market.  An active, prosperous market means quick transactions, ample housing choices, and active sellers.

If you're thinking about buying a home and need some help, don't hesitate to send us an email or give us a call.  We'll be happy to help.

Real Group Real Estate

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2526 N Lincoln Ave
Chicago, IL 60614

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