RealtyTrac has introduced its Investor Insight report, titled ‘Real Estate Investor Purchase and Finance Patterns: 2011 to 2013,’ which shows that investors have purchased more than $1 trillion in U.S. real estate since 2011.
According to RealtyTrac, the report looks at a number of investor habits relating to real estate purchases since 2011 – including the volume of properties purchased, the breakdown of cash versus financed purchases, property situation (distressed, non-distressed, underwater, etc.), investor purchases by property value and number of investor-purchased properties that have since resold.
Some findings from the report include the following:
-Out of the more than 950,000 purchases totaling more than $1 trillion made by investors since 2011, 54% were all-cash purchases. When the data is filtered for just entities that purchased at least 1,000 properties, the all-cash percentage skyrockets to 93%.
-Investors have purchased more than 370,000 properties so far in 2013 – already more than in either of the previous two full years.
-More than half (54%) of properties purchased by investors were underwater but not in foreclosure. Meanwhile, 24% of properties purchased by investors were in foreclosure or bank-owned, and 23% were regular, equity purchases.
-Among entities that purchased at least 1,000 properties during the three-year period, 36% were in some stage of foreclosure (22% auction alone), while 37% were underwater, and 27% were regular equity sales.
-Among all investor purchases during the time period, 57% have subsequently been re-sold, but only 25% of properties have been re-sold by entities purchasing at least 100 properties, and only 1% of properties have been re-sold by entities purchasing at least 1,000 properties.
The Investor Insight report also covers the following metrics:
-Transaction by financing type identifies how many properties were purchased with 100% cash, 100% finance, mixed cash and finance, or unknown along with the amount identified for each category.
-Finance by lender identifies by investor name which banks financed investor purchases, how much was financed and how many properties were involved in the financing.
-Transaction by situation identifies the type of situation the property was in at the time of purchase (e.g., in foreclosure, underwater or regular purchase).
-Transaction by amount range identifies the number of properties purchased within set sale price ranges.