WASHINGTON, DC (June 24) – Rising home prices and increased competition
for home purchases in many parts of the country have resulted in some
investors dropping out of 2013’s resurgent housing market, a new
national survey reveals.
According to the latest Campbell/Inside Mortgage Finance HousingPulse
Tracking Survey, the investor share of home purchases tumbled from
22.0 percent in April to 20.2 percent in May based on a three-month
moving average. That was the sharpest drop in investor activity recorded
in more than three years.
Meanwhile, both current homeowners and first-time homebuyers increased
their participation in the home purchase market between April and May.
Current homeowners accounted for 43.8 percent of home purchases last
month while first-time homebuyers represented 36.0 percent in May,
HousingPulse results showed.
there was more evidence of an investor pullback from the housing market
in the May HousingPulse numbers. The Investor Traffic Index, an
indicator of future home purchase activity, was down for three months in
a row ending in May. In comparison, the Current Homeowner Index and
First-time Homebuyer Index both only started to seasonally ease downward
recent years, investor home purchase activity has been concentrated
among damaged foreclosed properties or so-called Real Estate Owned (REO)
as well as short sales, since these two property types generally offer
discounted pricing and provide more profitable opportunities for renting
the latest HousingPulse numbers reveal investor purchases of both
damaged REO and short sales fell significantly in May based on a
three-month moving average. Comments from survey respondents indicate
that profit margins have been squeezed by rising prices, reducing
incentives for investors to buy.
drop in investor interest in both the damaged REO and short sales
sectors has correlated with a drop in the sales-to-list price ratios for
these properties, HousingPulse results show.
respondents in May were asked to report on investor purchases and
imputed sales of rental properties. Real estate agents reported that
investors are buying fewer short sales because of long delays in
closing, during which time property values might decline. Survey results
also show that small investors are selling off their inventory of rental
Campbell/Inside Mortgage Finance HousingPulse Tracking Survey
involves approximately 2,000 real estate agents nationwide each month
and provides up-to-date intelligence on home sales and mortgage usage
information on the survey, contact John Campbell at Campbell Surveys at
(202) 363-2069 or
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