Investors Have Acquired Nearly 30% of the Residential Real Estate Market in the United States
Posted May 9, 2012on:
A recently completed study has revealed that investors represent 28% of residential real estate in the single-family residential market. The “2012 Invaluable Investor Study” is a wake-up call for traditional buyers, individuals who want to buy but can’t, and people who have been thinking about buying. With investors in control of over a quarter of the single family home market, traditional buyers have fewer options – but non-traditional buyers have more options than ever. How does this affect you?
Traditional Buyers are Competing with Investors
Investors have long been treated as a marginal element in the residential real estate market. But this study proves conclusively that investors are important players in the market, controlling nearly 30% of single family home properties. If you’re a traditional buyer, this means that you’re not only competing with other buyers for available homes – you’re competing with investors, too. And investors are looking for the best deals, and successful investors are some of the most savvy real estate buyers. So if you’re in the market for a home, you face some stiff competition in the form of investors.
Investors Provide Options for Non-Traditional Buyers
For buyers who are unable to obtain financing through traditional means, the high number of investor-owned residential properties can be good news. Each of these properties may represent an opportunity to buy a home where you might not have had the option through traditional means. The study shows that many of these investors are renting out these homes, so not all of them are available for purchase, but this still means more homes than expected for buyers who have trouble obtaining standard financing.
Whether you’re a traditional buyer who is competing with investors for homes, or a buyer who has had trouble obtaining traditional financing – one thing is clear: now is the time to buy. With the high number of investor-controlled properties, you may need longer lead times to get the home you want. And if you’re competing with an investor to find your dream home, you can’t afford to wait until the market is even more competitive.