[IMGCAP(1)]
IRVINE, CA-Investors paying all cash make up a majority percentage of those buying housing, according to a just-released RealtyTrac investor-insight report. After studying real estate investor purchase and finance patterns between 2001 and 2013, the firm found that out of the more-than-950,000 purchases totaling more than $1 trillion made by investors during this time period, 54% were all-cash. When the data was filtered for just entities that purchased at least 1,000 properties, the all-cash percentage skyrocketed to 93%.
“The investors purchasing 1,000 or more properties are mostly backed by deep-pocketed hedge funds or private equity firms able and willing to pay cash for homes,” Daren Blomquist, VP of RealtyTrac, tells GlobeSt.com. “That is why we see such a high percentage of cash sales for those investors.”
The report also revealed that investors have purchased more than 370,000 properties so far in 2013, already more than in either of the previous two years. The complete report will be available for purchase at the Mortgage Bankers Association 100th Annual Convention and Expo this week in Washington, DC.
As GlobeSt.com reported earlier this week, institutional-investor purchases reached a new high in September, representing 14% of all US residential sales, according to RealtyTrac. In addition to being up from 9% in August and 9% in September 2012, this September had the highest percentage of institutional-investor purchases of any month since RealtyTrac began tracking in January 2011, the firm reports.
[IMGCAP(2)]
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.