Real Estate Investors Cooling on Homes

Washington, DC, July 23, 2013 -- There are signs that investors are cooling on the distressed housing market, according to the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.

Current homeowners are providing much of the buying power currently driving the housing market, Campbell said, while investors are continuing to lose steam in the face of rapidly escalating home prices.

The new HousingPulse data shows that current homeowners were the only group that saw its share of home purchases rise last month – from 43.8% in May to 44.6% in June based a three-month moving average. First-time homebuyers witnessed a slight drop in marketshare, going from 36.0% to 35.7% during the same one-month period.

But the bigger story was the continuing slide in investor participation in the housing market. In June, the investor share of home purchase transactions fell to 19.7%, HousingPulse results show. That was down from a 23.1% share found as recently as February and the lowest level recorded since September of 2012.

Another factor in the slide in investor activity is the supply of distressed properties, which has been shrinking at a rapid rate. The HousingPulse Distressed Property Index shows that the percentage of home purchases involving foreclosures or short sales tumbled to 28.2% in June, a big drop from the 40.3% level recorded a year earlier. It also was the lowest distressed property share recorded in at least three and half years.

Thirty-one percent of sales were all cash, Campbell said. That share is usually below 10%.



Other Archived Articles

Philly Manufacturing Continues to Expand   Full Article
Philadelphia, PA, Oct. 16, 2014 -- The October Manufacturing Business Outlook Survey indicated continued growth in the Philadelphia region’s manufacturing sector this month.

Builder Confidence Declines in October   Full Article
Washington, DC, Oct. 16, 2014 -- After four consecutive monthly gains, home builder confidence fell five points this month to a level of 54 on the National Association of Home Builders/Wells Fargo Housing Market Index.

Industrial Production Rebounds in September   Full Article
Washington, DC, Oct. 16, 2014 -- Industrial production rose 1% in September, the Federal Reserve said.

Jobless Claims Lowest in Over 14 Years   Full Article
Washington, DC, Oct. 16, 2014 -- Initial claims for unemployment benefits last week were the lowest in more than 14 years, according to the Labor Department.

WFCA Taking Entries for Gold Standard Award   Full Article
Anaheim, CA, Oct. 16, 2014 -- The World Floor Covering Association is accepting entries for the annual Gold Standard Award.

Foreclosure Activity at Pre-Bubble Levels   Full Article
Irvine, CA, Oct. 16, 2014 -- Foreclosure activity last month hit the lowest level since July 2006, according to tracking firm RealtyTrac.

Business Inventories Rise Less Than Expected   Full Article
Washington, DC, Oct. 15, 2014 -- U.S. business inventories rose less than expected in August, according to the Commerce Department.

Producer Prices Decline in September   Full Article
Washington, DC, Oct. 15, 2014 -- Producer prices in the U.S. fell in September for the first time in more than a year, according to the Labor Department.

New York Area Manufacturing Slows in October   Full Article
Washington, DC, Oct. 15, 2014 -- Manufacturing in the New York region expanded at a much slower pace in October, according to the New York Federal Reserve.

Retail Sales Decline in September   Full Article
Washington, DC, Oct. 15, 2014 -- U.S. retail sales fell more than expected in September, following the biggest gain in four months in August, according to the Commerce Department.

Mortgage Applications Up on Lower Rates   Full Article
Washington, DC, Oct. 15, 2014 -- Mortgage application volume rose 5.6% last week from the previous week as interest rates fell, according to the Mortgage Bankers Association.

Florim Opens Showroom in Moscow   Full Article
Moscow, Russia, Oct. 15, 2014 -- Tile company Florim said it has opened a new flagship store in Moscow.

Retirement Fund Files Suit Against Lumber Liquidators   Full Article
Toano, VA, Oct. 14, 2014 -- Lumber Liquidators is facing a class action law suit brought by the City of Hallandale Beach, Florida, Police Officers' and Firefighters' Personal Retirement Trust, according to the Virginia Gazette.

UFloor Systems Signs Western Distributor Big D   Full Article
Aurora, CO, Oct. 14, 2014 -- UFloor Systems has signed Big D Floor Covering Supplies to distribute its Uzin subfloor preparation products.

Mannington Raising VCT Prices in January   Full Article
Salem, NJ, Oct. 14, 2014 — Mannington Mills said it will raise prices by 4% on all of its vinyl composition tile products effective Jan. 5.

Armstrong Issues Third Quarter Warning   Full Article
New York, NY, Oct. 14, 2014 -- Armstrong World Industries became the second public flooring company to issue a third quarter profit warning.

WFCA Names New Leader of Northwest Association   Full Article
Anaheim, CA, Oct. 13, 2014 -- The World Floor Covering Association has named Tish Gasparich leader of the WFCA’s Affiliate Flooring Association Northwest(FAN).

Horizon Forest Products Moves Richmond Offices   Full Article
Richmond, VA, Oct. 13, 2014 -- Horizon Forest Products moved its Richmond offices to 4820 Eubank Road in the Interport Business Center.

Share of Custom Homes on the Decline   Full Article
Washington, DC, Oct. 13, 2014 -- New NAHB research reveals significant regional differences in the share of custom homes started in 2013.

Self's To Distribute Novalis LVT in Midwest   Full Article
Toronto, Canada, Oct. 13, 2014 -- Wichita, Kansas-based Self’s, Inc. will now distribute luxury vinyl flooring made by Novalis Innovative Flooring.