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Econohomes Study Shows Local Investors Are Healing the Residential Housing Market
added: 2011-03-21

Econohomes, the leading online source for wholesale investment properties, released the findings of its 2010-2011 Real Estate Investor Report. This in-depth study underscores the importance of small, local investors in healing the U.S. residential housing market. The report finds strong demand from smaller, part-time, local investors for distressed REO properties priced under $50,000. Econohomes surveyed the buying patterns of more than 17,000 investors across the country.

These investors are overwhelmingly local (nearly 85%), pouring needed capital and resources into their communities, and reducing widespread vacancies plaguing some of the hardest hit neighborhoods. With the help of these investors, those displaced by the recession can now afford to rent, rebuild their credit, and eventually buy these homes from these investors.

"This new research shows a growing grassroots movement of new, part-time, local investors acquiring, rehabilitating, renting, and reselling the tens of thousands of distressed REO properties in the market," said Jeff Ball, President, Econohomes. "These investors are vital to stabilizing the residential real estate market, and Econohomes is extremely proud to be a key part of the solution."

Other key findings include:

- Most investors are renting their properties (57%), rather than immediately reselling after repairs. We believe this is a result of the small number of people who currently can qualify for a mortgage.

- Millions of people fit the profile of these small, local investors – 36-55 years of age; self-employed or works part-time; making less than $100,000 in household income.

- Bulk buying is more hype than reality with most investors buying one property at a time within driving distances of their home. Very few (11%) are interested in buying in bulk, especially across state lines as most bulk packages are offered today.

Source: Business Wire

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