Real estate investors have helped the market recover. But for the long-term health of the market, maybe they should stop now.
(To be clear: By “investors” I mean people and companies that buy single-family homes to turn them into rentals, not house-flippers.)
Here’s what’s worth watching: When all those foreclosures went on the market at deep discounts, investors began snapping them up. That was a good thing, because there was so much inventory out there that prices were staying low.
Once most of that distressed inventory was gone, though, conventional wisdom said that investors would ease off. Prices would go up and the great deals would be gone.