Despite belief that rising home prices across the state were driving investors out of the housing market, a new report found that 2013 saw an increase in buyers with plans to either flip the homes or renovate and rent.
According to RealtyTrac, 12 percent of Florida home purchases in 2013 were made by institutional investors, up from 9 percent in 2012.
In Palm Beach County, 8 percent of sales last year were to institutional investors _ defined as an entity that has bought at least 10 homes in the prior year _ up from 6 percent in 2012.
Nationally, investor sales made up about 7 percent of all purchases last year, up from 5.8 percent the year before.
The Jacksonville area boasted the highest percentage of investor purchases in the nation last year at nearly 39 percent. Lee County, on the west coast of Florida, was also high at 25 percent.
Local investors are watching the purchases with concerns. They say Wall Street buyers like Blackrock, which owns Invitation Homes, and Santa Monica, Calif.-based Colony Financial, are overpaying for properties, artificially jacking up the prices.
“It’s what I call the corporatization of residential America,” said Jack McCabe, chief executive of McCabe Research Consulting in Deerfield Beach. “You have a lot of neighborhoods now where big percentages of homes are owned by corporations and what happens to the community in the long run isn’t being talked about.”
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on Monday, January 27th, 2014 at 8:52 am and is filed under Florida economy, Housing affordability, Housing boom.
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