Berkeley, CA (PRWEB) September 13, 2013
Brett Weinstein Berkeley, CA real estate broker with Realty Advocates notes that according to the CNBC article, “Waning Investor Demand Opens Door for First-Time US Home Buyers”(1) the real estate marketing is opening up for first-time home buyers as investor demand decreases. "Investors helped stabilize a housing market that was in free-fall and they did so by taking advantage of fire-sale home prices," said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. "Now you see few fewer bargain prices in the market and that's a reason investor demand is coming off its peak." Investors accounted for about 20 percent of home purchases in June, down from a high of 23 percent in February and the lowest level since September 2012, according to the Campbell/Inside Mortgage Finance survey of real-estate conditions. One of the homes for sale in Rockridge is 432 McAuley St, Oakland, listed for $925,000.
Weinstein says it is important to note that according to the article, large investors appear poised to reduce purchases further. A recent survey by polling firm ORC International found that about 48 percent of investors surveyed planned to curtail home purchases over the next year, up from 30 percent in a poll conducted 10 months earlier. Only 20 percent expect to buy more homes, down from 39 percent. As the housing sector reached bottom, hedge funds and private equity firms began raising money to snap up foreclosed homes with the intent to rent them out for several years and unload them at a profit once prices rose far enough. These firms have spent billions of dollars over the last year buying up single-family homes in bulk, mopping up excess inventory in the market and pushing up home prices. Sellers often jumped at their all-cash offers, rather than taking a chance on first-time homebuyers who would have needed to secure a mortgage, still a hard task for all but the most qualified buyers. Many banks holding foreclosed properties are often looking for a quick deal. But with mortgage rates rising in anticipation of the Federal Reserve scaling back the generous stimulus to the economy it introduced during the financial crisis of 2007-2009, investors are pulling back. A great example of townhouses for sale in El Cerrito is 112 Vista Heights Road, which overlooks Wildcat Canyon Park.
Brett Weinstein started his real estate career in 1983, buying, renovating and renting/selling houses in the East Bay. Working closely with the Realtors® who were part of his team, he saw the possibility of creating a real estate agency that delivered maximum value to the client. In 1986, he co-founded Realty Advocates to bring a new ethos to residential real estate: providing premier service and greater bottom-line value.
Weinstein enthusiastically takes the role of a true advocate for his clients. With refreshing candor, he demystifies the real estate world and makes the whole process feel effortless. He taps his background in architecture and his extensive knowledge of current construction costs to help sellers make smart upgrades to their home before selling and to help buyers budget for repairs and improvements as they prepare to make an offer. Brett Weinstein can be reached via email at brett(at)realtyadvocates(dot)com, by phone at 510-428-0757, or via his website at realtyadvocates.com