Current homeowners are playing a bigger role as housing market participants amid a sharp slowdown in investor activity, according to data from the Campbell/Inside Mortgage Finance HousingPulse Tracking survey.
Among three buyer types-current homeowner, first-time homebuyer, and investor-the survey showed current homeowners were the only group to see activity rise in June.
Last month, current homeowners represented 44.6 percent of the purchase market, up from 43.8 percent in May based on a three-month moving average.
At the same time, the share for first-time homebuyers fell to 35.7 percent from 36 percent month-over-month.
Even more notable was the decrease in investor purchases. As rising home prices discourage investors, HousePulse found home purchases from investors slipped to 19.7 percent, down significantly from 23.1 percent from February. The percentage also represents the lowest level since September 2012.
Falling in line with the decrease in investor activity was a drop in the supply of distressed properties.
According to HousingPulse, the share of foreclosure or short sales transactions plummeted year-over-year, falling to 28.2 percent from 40.3 percent in June 2012. The percentage represents the lowest level in at least three and half years.
The HousingPulse survey also revealed investor traffic decreased for the fourth straight month in June.
Agents across the United States also offered insight into investor activity, with one Arizona agent stating, “Investors have left our market with rising house prices,”
In California, one agent reported, “Values have increased by 20% since January and investors are backing away.”
The survey includes about 2,000 real estate agents nationwide. ‘
by Krista Franks Brock