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Investor share of home sales climbs: RealtyTrac

Posted on Friday, May 1, 2015 at 8:09:19 AM

Now is a good time to buy, both for traditional homeowners and investors. Current residential financing rates remain low, the economy is improving and the housing market has been stable as of late.

These trends have helped contribute to higher home sales, especially for smaller investors. According to a RealtyTrac report, the share of single-family home sales made up of non-owner occupants - otherwise known as investors - reached a high of 36.8 percent in the first quarter of 2015.

"The first quarter sales data broken down by owner-occupancy status suggest two important trends in the housing market: first, investor activity continues to represent a disproportionately high share of all home sales activity in this housing recovery, but unlike the past three years the large institutional investors are backing out while the smaller, mid-tier and mom-and-pop investors are remaining active," explained Daren Blomquist, vice president at RealtyTrac.

Many of these investors target foreclosures and other distressed properties. According to CoreLogic, the foreclosure inventory is actually on its way down, declining by 27.3 percent from February to March. While this may limit some inventory for investors, it is a sign of a stronger housing market.