There has been a recent resurgence in the number of real estate investors who are buying properties in California. According to CoreLogic, four out of the 11 metros with the highest volume of single-family purchases made by investors were in the Golden State. This is a reversal of a year’s long decline by investors who left California to focus on more affordable states.
“After a decade of moving away, investors are coming back to California,” wrote Thomas Malone in CoreLogic’s analysis. “The California rise is likely due to large investors, who seem less deterred by the high prices found in the area.”
Investors are capitalizing on a red-hot rental market in the state. Many would-be home buyers are seeking out homes to rent instead of buy, possibly waiting for a cooling of prices in the next couple of years.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (877) 700-0942 and your questions may be featured in an upcoming article.
