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.