Your #1 Guide to Real Estate!
 Welcome to the BearLakeRealEstate.com Blog

2011-08-23 10:47:28
How do we keep investors buying at Bear Lake?
Monday, August 22nd, 2011, 8:10 am

 

Investors are pulling back from the housing market as the flipping model loses speed on weak homebuyer demand, according to the latest  Campbell/Inside Mortgage Finance survey.

The HousingPulse Tracking Survey showed demand for properties is low, forcing investors to rent out half the homes they acquire. With few investors satisfied with this model, July investor activity declined, making it the third consecutive monthly drop.

Investors accounted for 19.6% of home purchases last month, down from 23% in April and the lowest level in the 12 months.

Survey results showed the proportion of first-time buyers did rise to 36.9% last month from 35.4% in June. Campbell surveys concluded current homeowners are unlikely to acquire distressed properties, creating a situation where recovery still depends on investor activity.

'The inability of most investors to resell homes in the current housing environment has put a damper on their participation in the housing market this summer,' according to Campbell.

Of the properties acquired by investors in July, 48% will be turned into rentals for now, according to the Campbell report. A year ago, only 28% of properties acquired by investors were kept as rentals.

This data may suggest that 'seasonal rentals' at Bear Lake may be more attractive to potiential buyers.  Buying to hold and gain equity over time is not attractive to investors because the capital gain is low.  So, if we can get them interested in buying at Bear Lake, they need to see that 'rental income' can generate 'gain' for them.  Subdivisions and properties that are 'friendly' to seasonal rentals are showing the most interest among invester types.  That interest should convert to 'increased value' among those properties.  Time will tell.

 
Blog Archive
2013-03-11 16:50:44
Discounts of Foreclosures - Recreation Realty

2013-01-29 14:21:11
January 2013 Newsletter - Paul Webb - Recreation R

2013-01-17 11:11:39
Justify the Sale Price of Your Cabin - Recreation

2013-01-17 11:07:02
2013 Housing Predictions - Recreation Realty

2013-01-03 12:04:44
Shadow Inventory Threat Wanes - Bear Lake Real Est

2012-12-14 16:13:21
Credit s for Lenders - Recreation Realty

2012-11-12 12:31:06
Cautious Optimistism in Real Estate - Recreation R

2012-11-07 12:24:41
Obama victory will affect Real Estate at Bear Lake

2012-09-07 11:58:06
Obama will protect the mortgage interest deduction

2012-08-31 13:35:52
Buyers Worried They're Losing Bargaining Power

2012-08-13 14:16:36
4 Reasons To Buy Now

2012-07-18 14:30:58
Inventory numbers are good news

2012-06-14 15:04:18
Another round of increased forclosure and short sa

2012-04-26 17:32:19
Increased activity and sales at Bear Lake

2012-04-24 15:03:41
Are Low Ball offers a thing of the past?

2012-04-02 16:58:37
Is a Forclosure Wave Coming this Summer?

2012-04-02 16:58:37
Is a Forclosure Wave Coming this Summer?

2012-03-23 12:30:56
Home price bottoming?

2012-03-16 13:32:09
Myths about Foreclosed homes

2012-03-12 20:18:54
Forclosure inventory is reducing

2012-03-07 12:15:04
Housing affordability at Record High....Very good

2012-03-06 13:14:58
Short Sale Questions and Answers

2012-02-13 13:17:33
Lender participation in recovery

2012-02-07 10:33:16
More Deals Falling Through

2012-01-13 11:27:18
Record low Mortgage rates

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.
Penilee 'Peni' Stevens
Broker / Realtor
435-757-3949
Kathleen Johnson
UT/ID Agent
435-213-0073
Heather Moldenhauer
UT/ID Agent
801-618-7990
Tonya Peterson
UT/ID Agent
435-757-8008
Mindy Nelson
UT Agent
435-760-9365
Joel Smith
ID Agent
208-851-0241
Charlotte
ID Agent
208-851-0241