What is driving the housing recovery?

By
Mortgage and Lending with Mutual of Omaha NMLS#: 274064

Realty Trac and Goldman Sachs reported that about half of home purchases this year have been to cash buyers.  NAR puts the number at 31% for July sales, but still is an all-time high.  That is not good news.  (Not just because cash buyers have no benefit to mortgage lenders like me.)  

A handful of these cash buyers are retirees or others downsizing to prepare for retirement, but the lion's share of these cash buyers are investors - either private investors or investment pools like REITs.  That is not the best way to rebuild a real estate market.  We need sustainable demand from entry level buyers and move up buyers.  These cash buyers are possibly setting us up for another mini-bubble when these homes get rehabbed and find their way back to the market. 

I am stepping up my renter marketing efforts to get more real buyers out there!  

 

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Topic:
Real Estate Best Practices
Tags:
bubble
real estate market
investors
first time home buyers
cash buyers

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Rainer
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Doug Walker

Branch Manager/Loan Officer
24 years of experience on your side!
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