Prices, Valuations, and Rates Driving Investors

I am working with more investors now that REO property pricing is getting much better. Goldman Sachs is warning clients that REO investors are bidding up for shrinking reserves of properties. Banks are agreeing to smaller price discounts. For homes in good working order, steep price discounts are becoming more unlikely with growing demand. The banks are starting to fix them up so there’s going to be less of a discount.

This chart shows average market value of sales nationally as of September 2012.  Investors are 18% of the market now, and some investors are taking advantage of programs like HomePath, so financing of up to 90% is available. 

There is some more inventory coming now that prices have stabilized and even ticked up. There’s a shortage of inventory almost across the entire country.   Confidence in the housing price outlook is improving, with consumers expecting prices to rise over the next year driven by investors attracted by record low valuations, rock bottom interest rates and low yields on other assets. 

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F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA
W.C. & A.N. Miller Realtors, A Long & Foster Company
Christie’s International Real Estate
4701 Sangamore Road, Bethesda, Maryland  20816
Tel: 301-229-4000  Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409 
Email:  HSlowinski@LNF.com  ·  Web Site: www.HillSlowinski.com