Better times for home buyers will take a few years, experts say
Source: The Los Angeles Times
Low inventory and rising home prices are frustrating to many buyers, but unfortunately would-be buyers may have to wait a few more years for relief, according to experts.
Making sense of the story
- Institutional investors, who have been driving the market with their all-cash purchases and buying houses for rental income, need to be in and out in two to three years, according to one real estate analyst. Otherwise they cannot make a profit.
- For housing to normalize, individuals will need to come back to the marketplace and that will be driven by employment.
- Among the signs that investors are buying up swaths of homes in a specific area are the lack of bank-owned properties coming on the market despite high foreclosure rates.
- Consumer understanding has been a step behind what’s happening in the housing market. When the prices started going down, sellers were the last ones that got the memo. Today’s buyers may have to be willing to look in different locations, while prices continue to appreciate.
For a detailed Market Analysis of your home or neighborhood, to to http://www.clarkransom.com for your Market Insider Analysis report.