I got an interesting call last week from a reporter in New York. He is doing a story on real estate investors and the positive effects they are expected to have on home sales in the next couple of years while helping the housing market recover. I was happy to hear that someone was giving real estate investors and our industry as a whole some positive PR for a change.
This reporter quoted a NAR statistic that said, “Home purchases made by investors are up from 18% in 2010 to 24% at this time”. If you ask several different people you are likely to get several different answers on the exact percentage of houses for sale they believe real estate investors are buying. But there is no doubt they currently play a major role in helping move the staggering amount of inventory we have at this time.
That is a pretty big number!
I was a little surprised myself that the number was 24%. I knew that real estate investors all across the country are actively buying up houses, but I didn’t know that almost one quarter of all sales today are closed by investors. That’s a lot!
With that statistic in mind, I really thought about all of the good things that will come about as a result of this.
Making a Difference
There will be profit to be made by real estate investors. There’s no doubt about that. However, there are also just so many other benefits for homeowners, neighborhoods and families. I believe that when we look back on this time in history, there will be a very positive spin put on what our industry as a whole accomplished.
The list of benefits is much bigger than the one I have compiled below, but here are 4 big changes I believe we can expect to see as a result of those folks investing in real estate during this time.
4 Big Changes We Can Expect
- Vacant houses in neighborhoods are a magnet for vandalism and crime. Putting homeowners in these properties can do nothing but help the neighborhood and the folks that already live there. Families that have pride in their neighborhood tend to take better care of their homes.
- Homes that have fallen into a state of disrepair as a result of being vacant and/or vandalized, will begin to see property values climb as they are renovated and are once again occupied.
- With so many houses on the market that need to be filled with people that want to live in them, the banks are going to have to come up with an easier way to get folks into these houses. Getting a loan just has to get easier.
- Big investing groups will have great opportunities presented to them with bulk REO’s if everything goes according to plan. They will be poised to make a lot of money while helping a lot of folks.
What positive changes do you see on the horizon?