Real estate investors don't buy very much these days in some areas

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December 08, 2005

Real estate investors don't buy very much these days in some areas

In the hottest markets where real estate still seems unstoppable and expensive, many investors are taking hard look and reevaluating their positions. Many are simply getting away and if this trend continues, it can speed up significantly the cooling of the housing market.

This trend is very recent and has not been reflected across the nation, but in such markets as Las Vegas, Miami, Phoenix, San Diego and Washington, D.C., where bidding wars for new condos were common, with people sleeping on the streets the night before the sales office opens, much fewer people are competing to buy properties as an investment, according to the local real-estate brokers and housing analysts.

The seminars on how to buy and profit by investing in real estate just recently filled up instantly with people eagerly waiting for the next one. Now they are half empty and many "real estate academies" are advertising heavily to attract new students and subsequent clients.

In San Diego, cancellation rates for new condominium units climbed 47% in the third quarter over the second with many investors backing out of pre-construction properties they bought, according to the San Diego County Building Industry Association .

In many markets, investors own large percentage of properties. Some individual investors own 10 properties and more, and are quite stretched financially waiting to sell. As the unsold inventory grows, prices can decline somewhat. Many then will be forced to sell fast and for less, to minimize their losses, further accelerating price decline.

The real estate markets where investors bought the most through September are:
Redding, Visalla-Tulare-Porteville, Fresno of California with approximate investor shares at 22%, 21%, 21% respectively, followed by Boise City of Idaho and Medford-Ashland of Oregon at 20.5% for both. The list goes on ... , see the page bottom.

Posted in Real Estate at December 8, 2005 01:31 PM

Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : Real estate investors don't buy very much these days in some areas

December 08, 2005

Real estate investors don't buy very much these days in some areas

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