Distressed Properties Nearly Half of Home Sales
Distressed Properties Nearly Half of Home Sales
Distressed Properties Nearly Half of Home Sales
Helpful
Tools
Mortgage
Calculator

Estimate your monthly payment for a home purchase or refinance
Auto Loan
Calculator

Determine how much car you can afford before buying
Learn About
Mortgage Loans

Learn about mortgage loans to find the one that's right for you
15 Year vs 30 Year
Loan Comparison

Compare payments between a 15 year and 30 year mortgage loan
Today's Mortgage
Rates

See today's current mortgage rates. Shop, compare and save.

November 23, 2011 (Chris Moore)

Distressed properties accounted for nearly half of the homes sold in October as investors increased their presence in the housing market while distressed property purchases by first-time homebuyers declined according to the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.

Sales of distressed properties increased to 48.4 percent of the housing market in October, up from 44.4 percent in September. Investors grabbed 22.3 percent of all the closed transactions in October.

Investors have accounted for over 20 percent of the monthly housing transactions since August. The strong demand for rental property and the low prices of distressed properties have been behind the surge in investor purchases.

The average price for a damaged REO property in October was $101,100, the lowest price for damaged REO in two years and far below the average price of $266,700 for non-distressed residential properties.

Campbell Surveys estimates that 61.6 percent of the properties purchased by investors end up as rentals with the rest of the properties being flipped.

“Given the current conditions in the market here locally, many of the investors are purchasing homes to rent until the market turns around then possibly looking to sell in a few years. Yes, at this point renting homes is a better option than flipping because the gap between what an investor can buy a house, fix it and flip it does not cover the cost of re-selling it,” said an agent from California.

Investors have also encountered the same problems that real estate agents have been complaining about – tight lending standards in today’s housing market are making it difficult to secure financing for property purchases, which makes turning a distressed property purchase into a rental a more attractive option until lenders loosen their credit criteria.

“The rental needs are great, and since no one can GET a mortgage, fix and flips are dying,” observed an agent in Colorado.

First-time homebuyers also became less active in the housing market in October as the gap between the supply of distressed properties and their absorption by first time homebuyers increased to 13.7 percentage points, up from a reading of 8.8 percentage points in September.

A real estate agent in Las Vegas noted that inventories in the area were dropping, which may lead to investors becoming more aggressive with their offers.

Tags: distressed properties, rental properties, low home prices, investor purchases, first-time homebuyers, housing market, strong demand

Source:
Campbell/Inside Mortgage Finance

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
HOW LOANRATENETWORK
LOAN CENTER WORKS
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Helpful Tools
Mortgage
Calculator

Estimate your monthly mortgage payment
Auto Loan
Calculator

Determine how much car you can afford before buying
Learn About
Mortgage Loans

Learn about the different types of home loans
15 Year vs 30 Year
Loan Comparison

Compare 15 year and 30 year mortgage loans
Todays Mortgage
Rates

See today's mortgage rates. Shop, compare and save.

November 23, 2011 (Chris Moore)

Distressed properties accounted for nearly half of the homes sold in October as investors increased their presence in the housing market while distressed property purchases by first-time homebuyers declined according to the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.

Sales of distressed properties increased to 48.4 percent of the housing market in October, up from 44.4 percent in September. Investors grabbed 22.3 percent of all the closed transactions in October.

Investors have accounted for over 20 percent of the monthly housing transactions since August. The strong demand for rental property and the low prices of distressed properties have been behind the surge in investor purchases.

The average price for a damaged REO property in October was $101,100, the lowest price for damaged REO in two years and far below the average price of $266,700 for non-distressed residential properties.

Campbell Surveys estimates that 61.6 percent of the properties purchased by investors end up as rentals with the rest of the properties being flipped.

“Given the current conditions in the market here locally, many of the investors are purchasing homes to rent until the market turns around then possibly looking to sell in a few years. Yes, at this point renting homes is a better option than flipping because the gap between what an investor can buy a house, fix it and flip it does not cover the cost of re-selling it,” said an agent from California.

Investors have also encountered the same problems that real estate agents have been complaining about – tight lending standards in today’s housing market are making it difficult to secure financing for property purchases, which makes turning a distressed property purchase into a rental a more attractive option until lenders loosen their credit criteria.

“The rental needs are great, and since no one can GET a mortgage, fix and flips are dying,” observed an agent in Colorado.

First-time homebuyers also became less active in the housing market in October as the gap between the supply of distressed properties and their absorption by first time homebuyers increased to 13.7 percentage points, up from a reading of 8.8 percentage points in September.

A real estate agent in Las Vegas noted that inventories in the area were dropping, which may lead to investors becoming more aggressive with their offers.

Tags: distressed properties, rental properties, low home prices, investor purchases, first-time homebuyers, housing market, strong demand

Source:
Campbell/Inside Mortgage Finance

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
HOW LOANRATENETWORK
LOAN CENTER WORKS
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Helpful Tools

November 23, 2011 (Chris Moore)

Distressed properties accounted for nearly half of the homes sold in October as investors increased their presence in the housing market while distressed property purchases by first-time homebuyers declined according to the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.

Sales of distressed properties increased to 48.4 percent of the housing market in October, up from 44.4 percent in September. Investors grabbed 22.3 percent of all the closed transactions in October.

Investors have accounted for over 20 percent of the monthly housing transactions since August. The strong demand for rental property and the low prices of distressed properties have been behind the surge in investor purchases.

The average price for a damaged REO property in October was $101,100, the lowest price for damaged REO in two years and far below the average price of $266,700 for non-distressed residential properties.

Campbell Surveys estimates that 61.6 percent of the properties purchased by investors end up as rentals with the rest of the properties being flipped.

“Given the current conditions in the market here locally, many of the investors are purchasing homes to rent until the market turns around then possibly looking to sell in a few years. Yes, at this point renting homes is a better option than flipping because the gap between what an investor can buy a house, fix it and flip it does not cover the cost of re-selling it,” said an agent from California.

Investors have also encountered the same problems that real estate agents have been complaining about – tight lending standards in today’s housing market are making it difficult to secure financing for property purchases, which makes turning a distressed property purchase into a rental a more attractive option until lenders loosen their credit criteria.

“The rental needs are great, and since no one can GET a mortgage, fix and flips are dying,” observed an agent in Colorado.

First-time homebuyers also became less active in the housing market in October as the gap between the supply of distressed properties and their absorption by first time homebuyers increased to 13.7 percentage points, up from a reading of 8.8 percentage points in September.

A real estate agent in Las Vegas noted that inventories in the area were dropping, which may lead to investors becoming more aggressive with their offers.

Tags: distressed properties, rental properties, low home prices, investor purchases, first-time homebuyers, housing market, strong demand

Source:
Campbell/Inside Mortgage Finance

HOW LOANRATENETWORK
LOAN CENTER WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.