Friday, July 26, 2019 / by Michelle Ramos
It's not commonly known to everyone that a significant percentage of houses bought in the US are purchased by small investors. Is this a good thing or a bad thing? Well, the truth is, it's both, it makes the market move which helps maintain a healthy balance of supply and demand.
Many have speculated that the large institutional conglomerates such as Blackstone, American Homes 4 Rent, and Colony Starwood dominate investor purchases.
However, a special report on investor home buying by CoreLogic, Don’t Call it a Comeback:
Housing Investors Have Been Here for Years, shows this is not the case. Ralph McLaughlin, CoreLogic’s Deputy Chief Economist and author of the report, explained his findings at the recent National Association of Real Estate Editors conference in Austin:
“Investor buying activity in the U.S. is at record highs. And our records go back confidently, about 20 years…
What’s going on and why? Well, it turns out, it’s not the big institutional guys that are leading the increase in home buying. It’s actually the smaller guys. It’s those that have bought between one and ten properties over this 20-year period, they’re the ones that are really leading the increase in investor home buying.”
Here is the breakdown of the percentage of purchasers by type of investor over the last six years according to the report:
Most houses purchased by an investor are bought by small investors looking to diversify their financial portfolio by adding a real estate component.
Reblogged from: http://bit.ly/310fNCV