Are Investors Driving Prices Up?

Today, we are seeing good deals on properties being offered as short sales and bank foreclosures. Often times there are multiple offers on these lower priced properties, especially on homes in good condition. This is making it difficult for some buyers to get the home they really want.

Investors are back in the market and are snapping up these properties with cash. In some areas cash buyers comprise about one quarter of the purchasers. These investors are driving the prices up over asking price and winning the highest bid.

It's good news that we are moving many of these properties off the market.

However, the buyer looking to occupy the property as his primary residence, buying with a traditional mortgage, often times feels as if he just can't compete.

The banks are finding the cash offers more attractive, since there are no inspection contingencies or financing contingencies. Thus, there is no concern as to whether the investor is overpaying for the property or whether it will appraise for today's market value.

This article is authored by

Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.