Record-breaking sales are deterring investors from picking up property—and there could be a sizable increase in transactions in the remaining months of 2021.
That’s the news coming out of the Burns Resale Housing Market Index, produced by John Burns Real Estate Consulting. As reported by Inman, index opened at 75.5 out of 100, which highlights continued resale market expansion. However, the pace is predicted to speed up over the next six months, with the expected resale home sales index at 83.1.
The data comes from surveys of more than 6,000 real estate agents in 497 markets, examining current resale home sales, expected resale home sales for the next six months and the future balance between supply and demand.
Speaking to Inman, John Burns Real Estate Consulting CEO John Burns said the agent feedback was of particular interest in this latest survey, with a number of survey participants noting that investors continue to make up a sizable portion of the market.
“The commentary over and over again was that entry-level buyers are losing out to cash buyers, which when you look at these comments, it’s investor activity. Cash is king,” Burns told Inman. “VA and FHA buyers who need a mortgage and need the appraisal to come through are struggling.
“That was a clear message to me there, particularly in the southeast where investors are playing a very big role in the market particularly below the $300,000 price range,” he added.
Inman
You can read more of Inman’s interview with Burns by clicking here.