As of recently, homebuyer’s across the country are having more difficult with financing. If you’re a homebuyer and you’re wondering why this is getting harder to do, well, one of the reasons could be that investor activity is dominating a distressed national market.
Cash transactions set a new record in February, accounting for 33.7 percent of purchases. This increase in cash caused a rise in investor activity, which accounted for 23.5 percent of home purchases in Feb. this up from 19.9 percent in December.
According to a real estate agent in Arizona who participated in the latest HousingPulse tracking survey, “There are a number of investors and businesses buying up the short sale and REO properties and renovating them and selling them as traditional sales.”
To note what is also going on in housing market, the Distressed Property Index fell 2.3 percent from Jan. to Feb., this being the first time it has dropped since last fall.