If the real estate market is in a meltdown, California real estate
investors haven't gotten the memo. In fact, residential real estate
investment activity
has grown over 65% in the past year alone.
WALNUT CREEK, Calif., Aug. 28 /PRNewswire/ -- According to an analysis
of current California real estate statistics, residential real estate
investors are the most rapidly growing population of buyers in California.
RightNow Consulting announced today the results of a research project
analyzing purchasing activities of California residential real estate
buyers. Preliminary July 2008 residential property data reveals that the
percentage of residential purchases by investors has risen from 6.74% to
11.41% since July of 2007. This represents a 69% increase in year over year
proportional activity.
Despite fewer financing options and lots of bad publicity, investors
are taking an aggressive stance. "We wondered whether investment activity
might have increased in California given current market dynamics, but were
truly surprised by these results," says Dan Miller, CEO of RightNow
Consulting. "Not only did the percentage of residential purchases by
investors increase, but so did the number of investor transactions,
increasing 16% from July 2007 to July 2008. Given that California median
home prices continue to slide -- down 3% from June and over 33% from July
of last year according to CAR statistics -- the dramatic increase in
investor activity is surprising."
By any measure, the increase is an encouraging nod to the perceived
long term value of California real estate. Despite the doom and gloom, for
investors and home buyers still sitting on the sidelines, favorable
interest rates and price declines might push the California real estate
market towards a recovery a bit sooner than expected.
Research Methodology: Total monthly index records searched ranged from
a low in July 08 of 67,329 (preliminary data) to a high in July 07 of
160,275 inclusive of refinance activity. Refinance activity was removed,
and non-owner occupied percentages of total purchase activity were
calculated using property data provided by First American Core Logic. The
final analyzed data set consisted of non-owner occupied purchases
(excluding corporate owned properties) and included all CA counties,
extracted from indexed property transfer records monthly from July 2007 to
July 2008. Purchase transactions which did not require financing were
excluded. Data analyzed and compiled by Laura Compton of RightNow
Consulting.
RightNow Consulting is a national company that helps clients identify
and execute sales strategies in specific market segments and niches. With
unique expertise in real estate related businesses, RightNow has helped
over 300 companies increase profits and revenues by capitalizing on
industry trends and information over the past eleven years. The company is
headquartered in Walnut Creek, CA, with clients extending nationwide.
[Via Real Estate California]
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