Rising Prices Drive Out Real Estate Investors

Blog, Buying, Market Updates, Real Estate News
Investor participation in the housing market dropped sharply in July, establishing a two-month trend and showing a clear reversal of long-term growth in investor purchases of residential properties. Investors need a deal and are having a hard time finding what they want. While investors often concentrate their purchases on distressed properties, the decline in investor purchases was also apparent in the non-distressed market. Investor participation in the housing market fell to 21.9 percent of all transactions in July, from 23.5 percent in June, based on a three-month moving average. Investor participation back in May of this year hit a two-year peak of 25.3 percent of all transactions. In contrast to investors, current homeowners showed strong interest in buying homes, accounting for 43.5 percent of home purchases in July, up from 40.3 percent in May and 42.0 percent in June.