Where have the investors gone? They are still here!

Yesterday’s USA Today article  by Julie Schmit  –Big investors buy up homes in key market  reminds us that, in spite of the large appreciation in recent years, there is still an appetite for investment in single family residential homes. According to Michael Orr, quoted in the article, investors still make up close to 1/4 of Phoenix Valley home sales as of this September.

At Toma Partners we see investor activity coming from two types of investors. One is the buyer who has a mandate to invest several million dollars developing a large portfolio of homes, and the other is the smaller investor who may buy a few to fix and flip.

Individual owner occupants are becoming a larger part of the market as investors back down slowly, and as short sellers of a few years ago regain their ability to finance. And through it all, prices continue to climb as shown by the graph below.

For your free access to the Cromford Report data,  click here.

 

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About Mike Garland

In this age of software, data bases and cloud technology, residential real estate provides an anchor to physical reality. At least for now, there is no virtual reality where people can share a meal, a swim in the pool or laugh in the living room with a view of Camelback Mountain the way they can in a luxury home. I enjoy helping people find and sell homes in the Phoenix Valley. With my team we specialize in residential real estate in the Biltmore area, Paradise Valley and the West Valley. I also head up the Toma Partners relocation group.
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