"Investor buying activity in the U.S. is at record highs."
Over 10% of all residential homes are purchased by investors, and that number continues to rise. Who are these investors?
Many have speculated that the large institutional conglomerates such as Blackstone, American Homes 4 Rent, and Colony Starwood dominate investor purchases. However, a special report on investor home buying by CoreLogic, Don’t Call it a Comeback: Housing Investors Have Been Here for Years, shows this is not the case.
Ralph McLaughlin, CoreLogic’s Deputy Chief Economist and author of the report, explained his findings at the recent National Association of Real Estate Editors conference in Austin:
“Investor buying activity in the U.S. is at record highs. And our records go back confidently, about 20 years…
What’s going on and why? Well, it turns out, it’s not the big institutional guys that are leading the increase in home buying. It’s actually the smaller guys. It’s those that have bought between one and ten properties over this 20-year period, they’re the ones that are really leading the increase in investor home buying.”
Here is the breakdown of the percentage of purchasers by type of investor over the last six years according to the report:
As the graph shows, the percentage of “Mom & Pop” investors is currently dominating the number of homes purchased by investors, as the percentage of homes purchased by both professional and institutional investors is falling.
Bottom Line
Most houses purchased by an investor are bought by small investors looking to diversify their financial portfolio by adding a real estate component. If you are investing in real estate as either a landlord or someone who fixes-up and flips the house, let’s chat about the ways you can build or liquidate your current portfolio of properties.
To view original article, visit Keeping Current Matters.
Why Staging Your House Could Pay Off This Spring
Staging doesn’t always have to mean hiring a full crew or filling your house with rented furniture. There are a few different paths you can take.
4 Ways To Give Your Offer an Edge This Spring
Here’s what you should know if you’re looking to buy a home during this busy spring season.
Rent or Buy? The Real Tradeoff Most People Don’t Talk About
Whether you’re looking to buy now or planning for the future, the first step is the same. Have a quick conversation with a local real estate agent about your goals, timeline, and budget.
The Best Week To List Your House Is Just Around the Corner
Based on analysis of historical trends, the ideal week to put your house on the market this year is: April 12–18.
Affordability Has Improved in All 50 States
When buyers have more choices, it creates a healthier balance in the market and that can help bring affordability back within reach.
The Remodel You’ve Been Dreaming About May Be Closer Than You Think
Whether the project you’ve been thinking about is on this list or not, chat with an agent to make sure it’s worth the time, money, and effort before calling in any contractors.