When it comes to buying homes, there are three groups to pay attention to.
The largest group of purchasers is existing homeowners who are “moving-up”, “moving-down”, or “moving-over”. They bought 44.6 percent of homes in June, up from 43.8 percent in May.
Then you have the second largest group, first time home buyers. The first time homebuyers showed some small signs of a pullback. They went from 36 to 35.7 percent of home purchases from May to June..
Finally you have the third and smallest group, investors. With the recent economic crash, we saw a spike in investor purchases, but we are beginning to finally see a pullback from this purchasing group. In June, investor home purchases went from 23.1 to 19.7 percent year over year.
What does all this mean? It means that the investors are pulling out and leaving room for the existing homeowners to make their switches. This is largely due to the increase in housing prices nationwide, making it less of a lucrative investment for someone simply trying to earn money on housing.
But for those individuals and families looking for a place to live, it opens doors for an investment in a structure to call your own, a place to call home.
Creekside Mortgage, Inc has a team of loan experts that will answer your lending questions. Give us a call today at 800.920.5420.
Source: Campbell/Inside Mortgage Finance