8 a.m., Oct. 23
"Flip" investors backing out of housing market
Cash investors still pushing out other potential buyers
In a sign that housing values may be approaching their peak, the California Association of Realtors trade group announced in its annual survey of real estate investors that more buyers of investment property are planning to hold onto their purchases as a long-term investment, rather than attempt to flip them for a quick buck.
Data for the survey was amassed in April, before some local experts began speculating about the possibility of a new housing bubble forming. At that point, two-thirds of respondents said they planned to keep their purchases for at least a year, compared with only 26 percent who were confident they’d re-sell in less than 12 months.
Cash is still king – 67 percent of investor buyers are not using financing to purchase units or single-family homes, which themselves comprised the bulk of purchases at 78 percent. Much of that cash is flowing into California from other countries, particularly China, India, and Mexico.
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- Foreclosures Fall in California, Across West, Rise in San Diego — Nov. 15, 2011