Investors are slowing down on homebuying, and it is one of the biggest issues facing South Florida’s housing market, according to analysts.
“There’s still a lot of investor activity, but it is declining,” said Brad O’Connor, a research economist for the Florida Realtors trade group. “As they exit the market, will demand from traditional homebuyers still push prices up?”
Currently, the answer is yes, according to the Sun-Sentinel, but industry experts are worried that investors have played too large of a role in the housing rebound, artificially inflating prices.
In July, 523 Broward buyers paid cash for single-family homes. That is down 10 percent from the prior year, according to Realtor board data. And cash sales countywide dropped 8 percent in June from June 2013.
But Richard Barkett, chief executive of Greater Fort Lauderdale Realtors, said he is still confident. He says that fewer investors means more “opportunity [for traditional homebuyers] to be active in the marketplace.” [Sun-Sentinel] – Christopher Cameron