Corelogic reports Single-Family Investor Activity Surges in the Second Quarter.
Large investors (those who retain 100 or more properties) are largely responsible for this rise. Of all investor purchases made in June 2021, 20% were made by large investors. This is much higher than 11% in 2020 or 14% in 2019. Small investors (those who retain between 3 and 10 properties), have declined slightly and now account for less than half of investor purchases at 46% in June. Mid-sized investors (those who retain 11-99 properties) have stayed constant, oscillating around 35% percent in the past 30 months. The pandemic seemed to drive away large investors, but they are now making up their largest share of investor purchases seen in the past decade.
If you have been outbid on a home there’s nearly a 1 in 4 chance it was to an investor or group of investors.
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Mish
Eddie, you that market much better than me but perhaps I contribute
a bit in another way. I don’t know the that residential real estate market like
you but there is a different type of investor buying now and I do know their mentality
because I spent a lot of time within that milieu. The people buying are
probably not the investors themselves but are companies that charged with
finding and buying real estate to buy for the investors who have decided to put
X percent of their assets into RE because, well, it is going up. They are not
like you. You carefully calculate your return because it is your money. The
people in the market now are not using their money but their investors’ money. I
am sure you see the difference. In this level of financial institution the
mantra is “get the deal done”. If possible do it in a way so that the client
makes money or at least doesn’t lose much but the principal goal is the deal
because you are paid by the deal upfront and that is all that counts. If
evaluations are stretched then you are motivated to fit the stretch by
reasoning. They are salesmen at heart and practice even if they come bearing
spreadsheets to give them the aura of expertise. The investors behind them are
motivated by long-term but they rely on professionals who are not. All parties
know it but the game plays on.
Macron’s position on nuclear is not a minority opinion in
many counties in Europe now. About ten countries have petitioned the European
Commission to declare that nuclear power is green and should benefit from the
same conditions as other green companies. Germany, always the spoiler, is
leading the resistance but many countries have had enough of them in more ways
than one. Nuclear will advance in spite of them because as I have said before,
Europe is not a top-down entity but a collection of squabbling very original peoples
all existing because they have been fighting for their respective national
identities for over a thousand years. In the end they don’t care what Brussels
says but will do what they want.