(Newswire.net — October 18, 2013) Denver, Colorado — According to Karl Lo, associate broker with Innovative Real Estate Group, “This is a great time for first time home buyers to get into the market. You no longer have to worry about competing against hedge funds and large reality entities when making a bid on your first home.”
The housing market’s recovery has been fueled by investor demand over the last two years, as savvy investors saw positive economic indicators and snapped up distressed properties at fire sale prices. Investors accounted for roughly 20 percent of home purchases in June, down from a high of 23 percent in February and the lowest level in two years, according to the Campbell/Inside Mortgage Finance survey of real estate conditions. “Investors were a force that stabilized the housing market when it was at its lowest,” said Karl Lo, associate broker with Innovative Real Estate Group. “Now that they are seeing fewer bargain prices in the market, this opens up the door for first time home buyers to compete for the good deals that are still out there.”
A recent survey by polling firm ORC International found that 48 percent of investors surveyed plan to reduce their amount home purchases over the next year, up from 30 percent in a poll conducted last year. Only 20 percent expect to buy more homes, which is down from 39 percent. “We are seeing that distressed home sales are accounting for only about 15% of home purchases, and many of them are staying on the market longer. If you are a first time home buyer you have a better chance of winning a bid right now since the investment firms are drawing back and submitting fewer bids.”
Citywide Home Loans Loan Officer Brett Baird says that there is good news on the lending front as well. “Banks are easing up restrictions on lending for the first time in a long time. If you have been denied before, you may find it easier to get financing this time around. With fewer investors in the hunt and consumer lending opening up, this may be the best time to buy your first home.”
Lo and Baird are real estate professionals that are dedicated to helping their clients buy the home of their dreams. To get in touch with Karl Lo at Innovative Real Estate Group, please visit http://myagent.ispyhomes.com/home/?ID=19297&clicksource=AgentAchieve. For more information about Brett Baird at Citywide Home Loans you can visit his website at http://www.chl.cc/brettbaird/.