Real Estate Investors ease back in the Summer of 2013

Fewer bargain prices in the real estate market

Real Estate investors are scaling back
REO inventory is down

Real Estate Investors in 2013 are finding a significantly reduced inventory of homes listed for sale (especially fewer Bank REO’s listed for sale on the local MLS) and strong competition from both home buyers and other real estate investors such as Buy Fix and Hold real estate investors.

Note: Dr. Howard Haller and share this Summer of 2013 information as documented reliable US Real Estate Investing and US Housing Data.

The percentage proportion of real estate investors choosing to invest in US residential real estate market has dropped slight from 23 percent of home purchases in February to about 20 percent in June—the lowest level since September 2012, according to data from Campbell/Inside Mortgage Finance survey. There are other real estate buyers that are now willing to invest in this market including home buyers and new investors, and Buy Fix and Hold real estate investors.

Michael Feroli, Chief U.S. Economist for JP Morgan Chase & Company states that “investors helped stabilize a housing market …and they did so by taking advantage of fire-sale home prices” Michael Feroli also adds, “Now you see few fewer bargain prices in the market and that’s a reason investor demand is coming off its [2012 and early 2013] peak.”

Material reduction in REO’s

The material reduction in REO’s listed on the MLS has significantly affected the US real estate market. The Equity Funds, according Bloomberg News, invested $7 Trillion in 2012 alone in REO’s bought directly from the Banks for Buy Fix and Hold.. It appears that the Equity Funds are still continuing to buy Trillions of Dollars’ worth of REO’s for Buy Fix and Hold in 2013.

Based on Dr. Howard Edward Haller’s research of several thousands of home sales in a broad cross section the major US real estate markets both the home buyers and the Buy Fix and Hold real estate investors are just out bidding the Buy Fix and Flip real estate investors on a regular basis in 2013.

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