Investors looking for yield are acquiring more low-priced homes to fill growing rental demand, according to the latest HousingPulse Tracking Survey from Campbell/Inside Mortgage Finance.
The survey shows that investors now dominate discount housing markets, and that first-time homebuyers are fading in favor of short-term living arrangements.
In fact, 61.6% of properties purchased by investors in October are slated to be rented out at some point.
The report notes that investor purchases represented 22.3% of all closed transactions in October. That compares to 19.6% in July, which is the last time the survey recorded this type of information.
Campbell/Inside Mortgage Finance says the upswing in investor demand for real-estate owned properties comes at a time when more families are turning to rentals. Average prices for REOs in October hit $101,100. This low price allows investors to grab the property, revamp it and turn it into a rental unit.
While investors are absorbing more distressed properties, first-time homebuyers are becoming less active in the lower-priced market.
Campbell/Inside Mortgage Finance bases its conclusions on feedback from 2,500 real estate agents.
If you are interested in investment real estate properties in the Columbus, Ohio area, please visit our site: http://www.ServingColumbus.com or call me directly: Vito Boscaino 614.571.9054