M Report – Krista Franks Brock
Rising prices may be bringing some homeowners out from under water, but tight credit will still preclude many traditional buyers from the market, according to a recent report from San Diego-based DataQuick, a real estate information and analytics provider. As a result, investors will continue to play a major role in the purchase market for the foreseeable future, DataQuick concluded.
Observing 42 of the largest counties in the nation, DataQuick found rising home prices in all counties for the second month in a row during October. “Homes listed for sale and overall sales will increase as more borrowers find themselves no longer underwater,” commented Gordon Crawford, VP of analytics at DataQuick.
“However, we can expect purchases by investors to continue to be a large share of all purchases, as a lack of affordable properties and tight credit standards will continue to drive high rental demand and keep many entry-level homebuyers out of the market,” Crawford added. In particular, “[i]nvestors will especially dominate what would have typically been entry level homes,” according to DataQuick.