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Investors Increase Market Share, Ramp Up Non-Distressed Purchases

Investors increased activity in the housing market in November, particularly upping their non-distressed purchases, according to the latest HousingPulse survey from Campbell Surveys and _Inside Mortgage Finance._

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After a near-record 23 percent of home purchases were made by investors in early 2013, investor share in the purchase market dropped to 16.6 percent in August.

By November, investor share was back up to 18.8 percent, based on a three-month rolling average, according to the HousingPulse survey.

Current homeowners claimed the largest share of home purchases over the three months ending in November.

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They contributed to 47.1 percent of home sales, while first-time buyers made up about 34.1 percent.

""""There has been a clear rebound in investor participation in the housing market,"""" said Thomas Popik, research director for HousingPulse.

Investors increased their purchases of non-distressed properties; although, they remained the biggest purchasers of distressed properties. HousingPulse reports investors contributed to 13.2 percent of non-distressed home sales in November, marking a seven-month high.

Current homeowners contributed to 52.3 percent of non-distressed sales, and first-time buyers contributed 34.5 percent.

While increasing their activity in the non-distressed market, investors still made up the greatest share of distressed sales--57.6 percent--over the three months ending in November. However, that figure is down from 60.7 percent a year earlier.

The share of distressed properties available for purchase over the three-month period ending in November ticked up from the three-month period ending in October. According to the survey, 24.9 percent of homes on the market were distressed in November, compared to 24.1 percent the month prior.

About Author: Krista Franks Brock

Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia.
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