Dec 11, 2012
First-time buyers vs. investors for mid-range homes
11 Dec 2012
Posted by Andrew Kantor
According to this HousingWire story, a good portion of the nation’s homebuyers fall into one of two camps: first-time buyers with low-interest FHA loans, and investors looking for single-family homes to rent.
The battleground: the $225K to $400K price range.
Nearly one out of every 3 buyers was an investor, typically paying cash for houses with a median price of $245,000, according to DataQuick.
Simultaneously, 25.5% of mortgage originations with FHA financing were to first time homebuyers, down for the second time in two months.
(Note that the article and the data don’t make clear whether these are real first-time buyers, or just people who are legally first-time buyers (i.e., it’s been more than three years since they’ve owned.))