According to a just-released Move.com survey, the number of consumers interested in investing in real estate has doubled since March 2009. Of the participants surveyed, 12.1% said they planned to buy a home as an investment property, compared to 5.6% in March 2009.
25.3% of consumers interested in purchasing a home today are focusing on foreclosure properties. Foreclosure buyers, according to the Move.com survey, intend to:
- live in the foreclosed home themselves, 57.6%
- convert their foreclosures into rentals, 13.2%
- fix them up for re-sale, 11.3%
- or house a family member until the home can be sold at a profit, 17.4%.
Today’s buyers of investment and personal property say they are motivated by these factors:
- Prices are as low as they will go, 23.6%
- Great selection of homes for sale in their target community, 21.2%
- Foreclosure prices are a bargain, 18.7%
- Concerned interest rates will rise, 14.2%
See the entire Move.com article: Affordable Prices Draw Investors to Real Estate
DownButNotOut
We concentrate a lot on first time homebuyers and relocation buyers. What this blog doesn’t acknowledge (IMO) is that there is a lot of wealth built up in the US, and I think you’re seeing the result of their buying power in the above stats.
Many seem to be buying for other than owner/occupancy reasons.Will they be right? I think history is in their favor.
bob c
i check the new listings (1 day old or less) each day and their volume has dramatically decreased
(using the tool on this website)
a month or two ago it was over 50 new per day in reno area, now its half that or maybe 1/3rd if you count sat, sun amd mondays 5 per day
this is highly unscientific, but it hits me s,ack in the face
the rally that no-one believes, the mother of all head fakes that has been predicted by everyone
usually most markets confuse and act in opposite to the published consensus
i see no reason for a rebound except that people are buying
BanteringBear
I don’t believe one word of this garbage. Any company which hires David Lereah as an executive VP loses all credibility. Just look at his record. Sure, he’s ‘moved on’, but that changes nothing about these housing shills.
smarten
Interesting observation Bob C –
FWIW, I too have noticed a drop off in the number of new Incline Village listings. As the number of listings drop and sales continue to plod along… I’m interested in seeing Guy’s data [especially the number of listings] over the next several months.
Love your observation “I see no reason for a rebound except that people are buying!” Surprised RI didn’t latch onto this one and enshrine it in his “quotes of fame.”
Zen
You always see a drop off in listings this time of year. The inventory usually peaks around July or August, then continually drops off to a February low, and in March it starts picking up again.
Here take a look: http://www.housingtracker.net/asking-prices/reno-nevada
I love the debate. I for one like lower prices. I think home ownership in this area is way too high and mainly benefits the bankers, who have convinced the masses that it’s good to be a slave to their own debt.
billddrummer
I coined the term ‘mortgage rent’ nearly three years ago to describe people who aren’t gaining wealth through home ‘ownership,’ but are merely renting their house from the bank.
It seems to me that many more people are mortgage renters than anyone ever imagined.
DownButNotOut
‘I think home ownership in this area is way too high and mainly benefits the bankers, who have convinced the masses that it’s good to be a slave to their own debt’
You can buy a home lower than it cost to build, so unless you think homes should be subsidized, or raw materials + labor is going down substantially in the future, I don’t see how this statement holds water.
MikeZ
RE: “Of the participants surveyed, 12.1% said they planned to buy a home as an investment property, compared to 5.6% in March 2009.”
Very interesting! I’d like to know how they chose their sample … where on the site is this survey?
GratefulD_420
With regards to the article… I think it is correct. There are more investors getting involved with the market and making purchases. They are making a profound effect on the inventory and I am watching the net results closely, especially on the pending/short sale.
I think they are wrong, especially the 23.6% that say “Prices as are as low as they will go.” I know for a fact that those speculating in the local Washoe market are very wrong. Even if the Feds continue to prop the gaming market(Harrah’s) for the time being(How sad is it? we are spending tax money to subsidize gambling owned by out of town equity holding firms?)… the party is over here in Reno.
Thanks Zen for pointing out the very obvious to Smarten and BobC as they have so convienently forgetten the cyclic nature of RE. Are they truly experts? spinsters? lamens? or just plain forgot again?
Don’t read their lips! Read their actions!
To DownButNotOut….. it does hold water….it’s called deflation. It’s occuring all around you. Just not at the gas pump..or in your energy or water bills.. because thats not competitive. Thats fixed. Everything that is not fixed or being propped..is in deflation. Maybe you did your estimates of building costs a few months ago… but I guarantee their cheaper today. They will also be cheaper tommorow. So your statement “so unless you raw materials + labor is going down substantially in the future” is actually your gut speaking the truth. I know, I know.. the Feds printed a bunch of money.. so inflation is coming…..but for now it’s deflation. I don’t know how long…..but if its anything like waiting for the RE market (watching paint dry).. then it will be a prolonged period of time. Also note the FEDS must truly be worried about it (deflation)… otherwise they would at least kick up the Fed rate 0.5%… or at least forecast it…. but only forecast is for prolonged period of ZERO.
Don’t read their lips! Read their actions!
Zen
“You can buy a home lower than it cost to build, so unless you think homes should be subsidized, or raw materials + labor is going down substantially in the future, I don’t see how this statement holds water”
It’s a whole lot cheaper to build a house today than it was three or four years ago. How about land values going down? Thats a pretty big component you forgot. Houses are built (were built) in many many places for far less than we build them here. How do they do it? As for subsidizing houses, that only drives the price of housing up.