Boston Condos for Sale and Apartment Rentals
Are investors to blame for low housing inventory?
Investors across the country are looking to cash in on skyrocketing house prices and rents, putting them in competition with new buyers trying to work their way to homeownership. Real estate investors bought a record 18% of the homes sold in the third quarter, according to a new Redfin report.
Investors purchased a record $64 billion in homes as growing housing and rental prices boosted prospects for returns. They seem to have their sights set on single-family homes, which made up nearly three-quarters of investor purchases — an all-time high.
“Investors looking to buy homes will confront people who want to live in them,” said Daryl Fairweather, chief economist at Redfin.
Low-priced properties represented 36% of investor purchases, the smallest share on record, according to the report. Investors had the largest market share in Atlanta, Phoenix, Charlotte, Jacksonville and Miami, meaning many homes they bought face high flood and heat risk.
“Increasing home prices fueled by an intense housing shortage have created opportunities for investors to reap big profits,” said Sheharyar Bokhari, senior economist at Redfin. “Those same factors have pushed more Americans to rent, which also creates opportunities for investors because investors typically turn the homes they purchase into rentals and can now charge higher rents.”
Boston real estate and the Bottom Line
Average monthly rents rose 10.7% year over year in September, the fastest growth in at least two years, while the median home sale price increased 13.9%, according to the report.
Boston Condos for Sale and Apartment Rentals
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Boston Condo for Sale
Boston condos for sale: Investors versus first-time home buyers
About 20 to 21 percent of homes purchased today are by investors,” but mostly smaller investors, Gary Beasley, CEO and co-founder of Roofstock tells Kelly Evans on ‘The Exchange.’ The narrative that there’s too much Wall Street money flowing in into the housing market is not necessarily fact-based, Beasley says.
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Boston Condo for Sale
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The National Association of REALTORS® has organized a report entitled The Investment Home Buyers Report. The report, is based on a survey of those who bought residential property including primary and investment homes.
National Trends
we saw a substantial increase in competition between property investors and first-time home-buyers. According to the report, investors are beginning to search for smaller more affordable properties in urban areas, often outbidding first-time home buyers. How?
Cash & Financing Terms.
Boston condo investors normally have a higher income with more disposable cash flow. This means they are more willing to buy a Boston condo for sale with cash instead of applying for a mortgage.
Additionally, when investors do obtain a mortgage, they are able to put down a higher down payment. This results in their loan more likely to get approved. In general, investors have a lower debt-to-income ratio as well as higher credit scores. Most first-time home-buyers can’t compete with those qualifications.
More Investors = More Competition For Entry Level Boston Condos For Sale.
Most investors buy Boston condos for sale to use as rental properties.This makes it more challenging for first-time home-buyers who may be outbid for lower priced condos.
Continuing Challenges For First-Time Home buyers
As Millennial’s grow older and the desire to settle down, the demand for rental properties is slated to remain high. However, this creates another conundrum – a lack of supply. With more and more investors and first-time buyers alike entering the low-end of the market, which creates more competition. Unfortunately, we’re not seeing the supply of available homes increasing. Looking into 2019, these trends are likely to remain the same.
Boston condos for sale and the bottom line
In 2019, the supply of Boston condos for sale may increase, but the new Boston condos for sale being built are not geared for first-time home-buyers. With cost of land acquisition so high, most have a price tag of $1M and above.
Boston Condo for Sale
