There's lots of speculation about how many speculators are snatching up foreclosure homes in the Valley. However, tracking investors is tricky.
Here's what we know for sure about the area's foreclosure home buyers, according to real estate analyst Mike Orr, publisher of the Cromford Report.
About 19 percent of metro Phoenix foreclosure homes to sell in the past month were purchased by buyers who checked the box “intends to rent the property to a third party” on property records. Those buyers are definitely investors.
About 34 percent of all Valley foreclosures were purchased by all-cash buyers. Most of those buyers are investors.
There's overlap between the cash-buyers and buyers who check the rental box on property records.
Investors are outbidding first-time home buyers on metro Phoenix's foreclosures priced below $350,000.
In 2005, a conservative estimate by real estate data firm Information Market showed 25 percent of all Phoenix-area home buyers were investors. That estimate was controversial because many in the housing industry thought it was too high.
However, not all investors were honest and listed out-of-state addresses or checked the rental box on real estate records. In mid-2005, lending giant Freddie Mac estimated as many as 35 percent of the Valley's home buyers were investors.There's lots of speculation about how many speculators are snatching up foreclosure homes in the Valley. However, tracking investors is tricky.
Here's what we know for sure about the area's foreclosure home buyers, according to real estate analyst Mike Orr, publisher of the Cromford Report.
About 19 percent of metro Phoenix foreclosure homes to sell in the past month were purchased by buyers who checked the box “intends to rent the property to a third party” on property records. Those buyers are definitely investors.
About 34 percent of all Valley foreclosures were purchased by all-cash buyers. Most of those buyers are investors.
There's overlap between the cash-buyers and buyers who check the rental box on property records.
Investors are outbidding first-time home buyers on metro Phoenix's foreclosures priced below $350,000.
In 2005, a conservative estimate by real estate data firm Information Market showed 25 percent of all Phoenix-area home buyers were investors. That estimate was controversial because many in the housing industry thought it was too high.
However, not all investors were honest and listed out-of-state addresses or checked the rental box on real estate records. In mid-2005, lending giant Freddie Mac estimated as many as 35 percent of the Valley's home buyers were investors.