Good News for ‘Typical’ Home Buyers

    In a speech delivered earlier this year, Secretary for HUD Julián Castro, called 2015 “A Year of Housing Opportunity”. A recent report by The National Association of Realtors (NAR) revealed that investment home sales decreased 7.4% in 2014 to an estimated 1.02 million.

    What does this mean for the ‘typical’ homebuyer?

    Lawrence Yun, NAR’s Chief Economist gave some insight:

    “Despite strong rental demand in many markets, investment property sales have declined four consecutive years to their lowest share since 2010 as rising home prices and fewer distressed properties coming onto the market have further reduced the number of bargains available to turn into profitable rentals.”

    This is great news for the housing market. If fewer properties are being sold to investors, they are instead being sold to American families who are entering the housing market in droves.

    Details of the Report

    There are many reasons buyers purchase a home as an investment property. Those who made a purchase in 2014 listed the opportunity for rental income as their top reason (37%).

    Below is a graph showing the top three reasons:

    Top3Reasons

    The median investment-home sales price dropped 3.8% to $125,000, from $130,000 in 2013.

    According to Yun, “the decrease in vacation and investment sales prices is likely due to the increase in vacation and investment buyers purchasing condos and townhouses, which contributed to a decline in the median size of 200 square feet for both.”

    The drop in price can also be attributed to the majority of investment purchases being located in the South (37%) where there are often better deals from a pure pricing standpoint.

    Below is a map detailing the investment purchases in 2014 by region.

    InvestmentsByRegion

    Bottom Line

    The housing market is continuing to recover and thrive. If your plan for 2015 includes buying your first, second or even investment property – contact us today to evaluate your ability to enter the market.

    Trackback from your site.

    Leave a Reply

    About our blog

    Our agents write often to give you the latest insights on owning a home or property in the North Metro Atlanta area.

    Tana Hubbard

    Tana Hubbard NMLS# 195097


    Mortgage Consultant
    Acopia Home Loans

    Visit my website
    Apply for a loan
    Mobile: 404-886-8199
    Fax: 866-770-4756

    Let me know how I can assist you with your North Metro Atlanta mortgage needs. I am here to help!

    Contact Us Now

    Any questions, comments, or feedback