Investors have had a big appetite for real estate lately, and they are expected to continue to snatch up homes in 2013 and help push home prices higher, according to real estate analysts with DBRS.
But their projections weren’t all rosy: “Mass real estate consumption by investors could eventually lead to large capital gains, bringing ever-increasing competition and then dampening yields at some point,” HousingWire reports on the DBRS projections. As such, investors’ big interest in real estate may start to dampen and some regions may then see home prices drop.
"And while large investors may continue to benefit even if housing prices continue to climb, homeownership will become an even more distant hope for many buyers if underwriting standards remain at their current levels," according to the DBRS report.
Source: “Home price appreciation driven by investors: DBRS,” HousingWire (Dec. 11, 2012)