Dennis Norman
According to a Survey conducted by the National Association of REALTORS (NAR),investment-home sales dropped 15.9 percent in 2009 to 940,000 sales from 1,120,000 in 2008. For comparison purposes,primary residence home sales rose 7.1 percent in the same period.
NAR Chief Economist Lawrence Yun said,“Investment buyers primarily seek rental income,with six in 10 planning to rent to others,although one in five wants a family member,friend or relative to use the home.”
The investment-home share of the home sale market decreased from 21 percent of all homes sold in 2008 to 17 percent in 2009. The median investment property sold for $105,000 in 2009,down 2.8 percent from $108,000 in 2008. Most buyers of investment homes buy close to where they live so it is not surprising that the distribution of investment sales in the U.S. was fairly close to the distribution of population with 35 percent of the sales in the South,25 percent in the West,24 percent in the Midwest and 16 percent in the Northeast.
Other highlights from the survey:
- 50 percent of the investment-home buyers paid cash
- Typical investment-home buyer in 2009 had a median age of 45,earned $87,200 and bought a home that was relatively close to their primary residence –a median distance of 24 miles.
- Roughly 25 percent of investment buyers purchased more than one property in 2009.
- Investment-home buyers plan to hold their property for a median of 12 years.
- 27 percent of investment-homes were condos.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.