Unique housing market opportunity appealing to investors
A new trend in the housing market shows that real estate investors are capitalizing on affordable mortgage loan rates, low home prices and an increasing demand for rental properties, reports HousingPulse.
The latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey indicated that investor purchases made up 22.3 percent of all home sale transactions during October. The rate was previously recorded at 19.6 percent in July. During the last three months, the rate has exceeded 20 percent, indicating a potential long-term trend.
Investors are encouraged by the low prices of real estate-owned properties. According to the survey, the average REO property sells for $101,100 – the lowest average in over two years. A more affordable price point when compared to the average price of a non-distressed property, which was measured at $266,700 in October.
An increased rate of REO properties entering the housing market is a major factor in the declining price point. The HousingPulse Distressed Property Index showed that the total share of distressed home sales increased by 4 percent to 48.4 percent in October.
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