Buyers face fierce competition with investors
Buyers face fierce competition with investorsAttractive mortgage rates, low home prices and rising rents make the current housing market the perfect opportunity for investors. When looking for bargains, homebuyers will continue to compete with investors.
This is true particularly at the lower end of the market and with first-time homebuyers, according to the National Association of Realtors.
One of the strongest recent housing trends: Many investors pay cash. These cash offers are an obstacle for buyers who need mortgages because sellers prefer buyers who can pay cash to close quickly.
Investors bought about 23 percent of the homes sold in January, according to the NAR's latest numbers. That's up from 21 percent in December, and that trend is not expected to shift this spring.
Rents are going up, and as long as there are properties at the level where investors can get the positive cash flow, they will continue to invest.