Investors alone held over 23% of total purchases in February 2011. That is up from 19% in just two months. The investor market has been getting more robust, mainly because of the incredible deals to be had in housing these days. Smart investors are going after the REO and Short Sale inventory and then renovating and reselling them as hot properties. That means that the Fix and Flip market is back. We haven’t seen much activity in that arena in years! The index that tracks the distressed property market showed a 2.3% drop in the bank owned property inventory. 2.3% doesn’t seem like much, but that is very significant to the health of housing as a whole. Contact me directly if you would like me to explain, in more depth, why this is so significant.
Cash buyers are back too, over 33% of the Nation’s home purchases in February were made up of cash transactions. That tells me that investors and individuals have been hoarding their dough for that last few years and waiting to become more confident in the market. Now that the confidence has returned, these folks are jumping off of the fence and striking while the iron is still hot.
As investors snap up the good stuff and inventories continue to drop, the overall health of the housing market strengthens. This, people, is how a market turns! And it is always comforting to see that light at the end of the tunnel.