I recently read an article written by the chief economist for the National Association of Realtors.
He stated that 22% of homes sold in August were purchased by investors. With rental prices continuing to rise and prices at affordable levels, the smart money sees value in real estate.
Some potential homeowners are sitting on the sidelines waiting for home prices to bottom out. Unfortunately, no one can predict the market. We won't know when prices have bottomed out until prices start rising again, and by then interest rates may be higher.
Investors are concluding that real estate at today's prices will provide a good return on their investment. The fact that prices may go a little lower is not deterring them from buying. If investors are right, it may be a good time for potential homeowners who plan to stay put for several years to buy a home.
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