What is a ‘typical’ homebuyer?
Lawrence Yun, NAR’s Chief Economist gave
some insight:
“Despite strong rental demand in many
markets, investment property sales have declined four consecutive years to
their lowest share since 2010 as rising home prices and fewer distressed
properties coming onto the market have further reduced the number of bargains
available to turn into profitable rentals.”
This is great news for the housing market.
If fewer properties are being sold to investors, they are instead being sold
to American families who are entering the housing market in droves.
There are many reasons buyers purchase a
home as an investment property. Those who made a purchase in 2014 listed the
opportunity for rental income as their top reason (37%). Below is a graph
showing the top three reasons:
The median investment-home sales price dropped 3.8% to $125,000, from $130,000 in 2013.
According to Yun, “the decrease in vacation and
investment sales prices is likely due to the increase in vacation and
investment buyers purchasing condos and townhouses, which contributed to a
decline in the median size of 200 square feet for both.”
The drop in price can also be attributed to
the majority of investment purchases being located in the South (37%) where
there are often better deals from a pure pricing standpoint. Below is a map
detailing the investment purchases in 2014 by region.
Bottom Line
The housing market is continuing to recover
and thrive. If your plan for 2015 includes buying your first, second or even
investment property – contact a local real estate professional to evaluate
your ability to enter the market.
Looking to Buy, Sell, or Invest? Contact: |
David Demangos
858.232.8410
Locally Known, Globally Connected
Luxury Home Marketing Specialist
Global Property Specialist
David@AwesomeSanDiegoRealEstate.com
www.AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
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