2014-06-19 14.55.38-9

With available, ‘homes for sale,’ inventory levels below 4% at this time, keeping in mind 6% inventory is historically a balance point between supply and demand, you might think there would not be enough houses out there to quench the thirst of both individual buyers vs investors.

Not so, it seems home buyers continue to dig deep, rely on their selected Real Estate professionals, and hone what only they know are their non-negotiables so that they may act swiftly with competitive offers. Some investors, appear to be mirroring those same individual buyer’s behaviors in this time of limited supply but high demand.  With interest rates still remarkably low, investors know that a purchase today will serve them well in the long term.

Investors focus on whether or not potential rents minus all of the expenses will provide positive cash flow (penciling out) as the long term ownership will build their real estate wealth profile with an end result of significant equity.  Individual home buyers often have the financial investment piece in their periphery yet many other motivations are involved in their formula for a home purchase (such as neighborhood, schools, amenities…).

The one difference I have noticed is that home buyers have the emotion tied to their purchase whereby the investors appear to commit on the surface but demonstrate and react with panic and withdrawal depending on what the international and national economic flavor profile is exhibiting. 2013-04-16 18.22.06

Yet another fascinating dynamic of the current Real Estate market–always lively, consistently demonstrating how important it is to hire the right agent for your needs (investor or individual home buyer).   2013-06-08 17.51.48-3