More Homes Sold to Investors in 2011

Washington, DC, April 2, 2012 -- Investment-home sales increased 64.5% in 2011, the National Association of Realtors said in its annual Investment and Vacation Home Buyers Survey.

“During the past year investors have been swooping into the market to take advantage of bargain home prices,” said Lawrence Yun, NAR’s chief economist, in a news release.

“Rising rental income easily beat cash sitting in banks as an added inducement.”

Forty-one percent of those who bought a home as an investment purchased more than one property. In all, 1.23 million homes were sold to investors last year.

The increased investor demand is helping to absorb some of the foreclosure volume hitting the market, and bank-owned inventory isn’t remaining on the market for long, Yun said.