Property Types Most Investors Want
For a little while now many real estate investors have stayed out of the real estate game. Prices have been too high in competition to fears. But now, many investors are getting back in the saddle when it comes to investing in properties in real estate but why and what type are they looking for now? Since the pandemic started, investor activity has been slightly waning. But a recent report from a major real estate Corporation stated that investor home purchases were up nearly 3% over the year in quarter 1, the first quarter incline since the pandemic began. About one in every seven houses is bought by some type of investor these days, which makes up about 50% of the total market share.
Recovery is coming
Investors are starting to feel a little more comfortable because the economy is in recovery. Many investors may be jumping back into the real estate game because they see the intensifying shortage of homes first is actually an opportunity. With so few homes for sale, many families are resorting back to rentals, something that investors definitely can cash in on. Because investors have not been purchasing property, many are flush with cash and are able to buy up homes as soon as they are available. These investors are then turning around and running them out to the folks that may not be able to find a home, are priced out of homeownership, or financially cannot buy a house at this time.
What type of homes are investors buying?
The single-family property has always been one of the top investor properties but it’s becoming much more so now. Single-family home purchases by investors are up almost 5% over last year at this time. Condo purchases rose just .9% for the quarter and townhouses and multifamily properties sell.
Americans have been prioritizing space and privacy over the last year and these single-family homes are a hot commodity. Many buyers are looking for this type of property over a crowded building or complex, which makes single-family homes one of the most prized possession when it comes to real estate purchases. However, multifamily properties are still in demand. Real estate investors purchased more than 1/4 of all the multifamily properties that were available for the first quarter of 2021.
Higher Priced Homes are a Hot Commodity
Higher-priced properties are also on investors’ lists. These higher price properties were up 20% in the first quarter while mid-priced homes were up 12.7% and lower-priced homes fell 9.2%. What’s the draw to higher-priced homes? Space. In the same vein that homeowners or renters want the space of a single-family home, they want the space of a larger property as well and if the market is so volatile right now, they may not want to buy just yet but instead rent a higher-priced home until the market cools off or they decide where they really want to be permanently. This is great news for investors that are snapping up these higher-priced homes in the hopes of a great rental market.
Real estate investors are also leaning toward tertiary markets, smaller metro areas with warm weather and stronger job markets a.k.a. Florida. Some of the strongest job markets, best weather, and best real estate markets have actually been in the Orlando area. Other places across Florida have some of the highest share of investor purchases the first quarter of 2021 with nearly 25% of all homes going to investors.
So what does this mean? Investors rejoice! There are several properties available and even in tight inventory markets, investors are finding the ideal property that can create either a good cash flow on a monthly basis or can be flipped and turned. However, most investors are hanging onto them right now because they’re still buying them at higher prices than normal.
If you’d like more information on investing in Orlando real estate or need a dedicated buyers representative to help you facilitate a purchase of an investment property, contact us below. This is exactly what we do. We help buyers find the right home and whether it’s an investment for cash flow, your personal home, or potential investment down the line, we can help you navigate to the real estate world, run the numbers with you, and help you find the perfect home for your needs.
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