Real Estate Investors The Bright Spot In A Lagging Market
Recent research by the National Association of Realtors found that investors in single family rental homes accounted for more than one out of five of all home purchases last year. That’s down from the 28 percent record set at the height of the boom in 2005, but it’s still a surprisingly large chunk of the total market. Roughly 1.35 million units changed hands last year, primarily aimed at the surging rental sector.
Unlike 2005, speculators are not pushing up pricing and looking to flip their properties quickly. The median price for an investor unit was $150,000 last year, down from $183,500 in 2005.
About half of the investors said they expected to hold onto their properties for anywhere from three to 11 years. Another 18 percent said their holding period probably would run from one to three years, and 20 percent weren’t sure. But only 10 percent said they planned to sell in less than a year.
