US real estate investors who capitalised on buying homes in foreclosure and short-sales houses during the recession in order to gain large rental and re-sale profits are now monopolising the market once again, edging out first-time buyers by offering all-cash deals on home purchases. With higher foreclosure start rates, and cash investments in some US cities remaining far above historical levels, first-time buyers of low-price homes are now competing for fewer properties. According to the National Association of Realtors, the supply of homes for sale declined to 1.79 million in 2016, and over the last year those priced below $100,000 fell 11.1%. As housing prices are expected to cool during December 2015, investors are favouring rentals. In Q4 2015, the median asking rent was $850 pcm, up from 11% in 2014.
US real estate investors who capitalised on buying homes in foreclosure and short-sales houses during the recession in order to gain large rental and re-sale profits are now monopolising the market once again, edging out first-time buyers by offering all-cash deals on home purchases. With higher foreclosure start rates, and cash investments in some US cities remaining far above historical levels, first-time buyers of low-price homes are now competing for fewer properties. According to the National Association of Realtors, the supply of homes for sale declined to 1.79 million in December 2015, and over the last year those priced below $100,000 fell 11.1%. As housing prices are expected to cool during 2016, investors are favouring rentals. In Q4 2015, the median asking rent was $850 pcm, up from 11% in 2014.