Current homeowners are playing a bigger role as home-buyers, with a sharp slowdown in investor activity, according to a Housing Pulse Tracking Survey by Campbell/Inside Mortgage Finance who surveyed about 2,000 agents nationwide. In June of 2013, current homeowners buying another home represented 44.6% of all home purchases, up from 43.8% in may. A third type of home buyer, the first-time buyer, also showed a decline in home purchases. As rising home prices seem to discourage investors, purchases by this type of buyer fell to its lowest level since September of 2012. Falling in line with decreases in investor activity was a drop in the supply of distressed properties….an understandable correlation.
This is good news for home buyers who have been repeatedly “beat out” in bidding wars for well priced homes by investors wielding cash & quick closings. If you would like to take advantage of this market, please contact me for a list of affordable homes.