Last week, the real estate analysis company John Burns Real Estate Consulting released a report that indicated investors might be the reason behind the housing recovery.
When analyzing 167 metro areas, the firm noted that 29.6 percent of all transactions were a result of investors. This was up from a low of a 23.6 percent market share at the end of 2009.
Markets most decimated by the housing crisis like Las Vegas (50 percent) and Phoenix (46 percent) are now actually dominated by investor buyers.
Most of the investors are purchasing with cash at the low end of the spectrum. According to senior research analyst Erik Franks, “They are helping the market recover by removing the supply at the low end of the market and driving real buyers to higher price points, including new homes.”