Investors Take a Step Back in More Markets

December 6, 2013

Rising home prices and limited inventories are prompting some investors to recede in housing markets where they once made up a big share of home buyers, finds a new report from CoreLogic, evaluating the number of investor purchases over the past year. 

Many investors had targeted foreclosures for the deep discounts, but the number of foreclosures has been falling in many markets. Also, national home prices have jumped about 12 percent the past year, erasing some of the bargains that investors searched for in snatching multiple properties and building their housing portfolios. 

Multiple property investors – those who purchased at least 10 homes during the year – shrunk by some of the highest amounts in Phoenix the past year, CoreLogic found. Multiple property investors accounted for nearly 14 percent of homes sold in Phoenix in July 2012. But that percentage fell to 7 percent in August 2013. 

Here’s a look at other markets that saw the share of multiple property investors shrink over the past year, according to CoreLogic. 

  • Charlotte, N.C.: Investors accounted for 12.5 percent of sales in April, but that percentage fell to about 6.7 percent in August. 
  • Atlanta: Investors accounted for 6.5 percent December 2012, and fell to 4.9 percent in August. 
  • Las Vegas: Investors fell from 14 percent in April to 11 percent in August.
  • Detroit: Investors dropped from 18 percent in October 2012 to 11 percent in August. 
  • Sacramento, Calif.: Investors fell from 7 percent in November 2012 to more than 3 percent in August. 

Source: “Investor Purchases Ebb in More Housing Markets,” The Wall Street Journal (Dec. 5, 2013)

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