Investors Setting Their Sights on Starter Homes

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Subscribe CoreLogic Investor Starter Homes Video Spotlight 2019-07-17 Seth Welborn According to CoreLogic Deputy Chief Economist Ralph McLaughlin, investor homebuying in 2018 was the highest on record. Investors purchased around 11% of available homes that year, and in this Video Spotlight, McLaughlin discusses why investors are focusing their efforts on the starter home market, and what impact this may have on potential homebuyers.According to CoreLogic data, “mom-and-pop” investors grew from 48% of all investor-purchased homes in 2013 to over 60% in 2018, and these small-volume investors seem to be focusing primarily on starter homes. Investors purchased starter homes at 2-3 times the rates of middle upper-tier homes.”Why are investors buying homes at high rates in some markets and lower rates in others?” McLaughlin asks. “Simply put, investors are attracted to markets where rents are relatively high compared to purchase prices. This called a cap rate, and it is highly correlated with the share of investor activity across the largest 100 markets.”McLaughlin goes on to say that markets that witnessed a larger increase in the share of investors also saw their market heat up.”While an uptick in investors into a market perhaps increases competition and lowers supply, the opposite is also possible: markets with tightening supply could draw investors in as they perceive such markets to be safer bets than those with more plentiful supply,” he continues. “Either way, it’s a truism that homebuyers today are more likely to cross paths with investors during an open house than at any other time in the past two decades.” July 17, 2019 1,154 Views Demand Propels Home Prices Upward 2 days ago Tagged with: CoreLogic Investor Starter Homes Video Spotlight Previous: Credit Risk: The Highs and Lows Next: Homeownership Rates Missing the Mark Home / Daily Dose / Investors Setting Their Sights on Starter Homes The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Share Savecenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago About Author: Seth Welborn Data Provider Black Knight to Acquire Top of Mind 2 days ago Investors Setting Their Sights on Starter Homes The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer.  Print This Post in Daily Dose, Featured, Investment, Newslast_img read more

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