Investors a Growing Segment

According to the National Association of Realtors, investor home purchases accounted for 19% of activity in May up 5% from a year ago.  Investors are now the second biggest segment of the purchase market behind first time homebuyers.  While the percentage above only includes purchases through realtors, investors also are picking up properties at auction, directly from sellers, and from banks.

Investors are a growing segment due to the difficulty many potential homebuyers having getting a mortgage and the rising rental market.  An upward trend in investor purchases might signify confidence that the housing market is near bottom.

Real estate investors are increasingly using cash to purchase their investment properties due to the tight lending practices of banks.  Hard money lenders are seeing an increase in applications as many investors may not be able to get financing and sellers consider hard money to be similar to cash.

For more information on this subject, please visit www.HousingPredictor.com

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