The gaprnbetween the supply of distressed properties and their absorption by first-timernhomebuyers has now widened to 13.7 points in October compared to 8.8 points inrnSeptember, indicating that first-time homebuyers have become less active in therndistressed property housing market.</p

Thernretreat of first-time buyers, the prime market for the kind of starter-level housernfavored by investors, coupled with low prices are starting to make buying,rnrepairing, and renting more attractive to investors than flipping properties.  The final factor is the strong demand forrnrental units.  Campbell Surveys estimatesrnthat 61.6% of investor properties purchased during the month of October will bernrented out, with the remainder being flipped.</p

A realrnestate agent from Nevada told editors of the HousingPulse, “Investorsrnare prominent in the city of LasrnVegas. They both flip and rent and buy properties in bulk.rnRenting single family homes is an extremely viable option and seems to be arngrowing trend in the valley with the decreasing of prices. Our inventory isrndropping so we are seeing more investors becoming aggressive with their offers.”</p

Thernreport quoted a second agent from California that, “Given the currentrnconditions in the market here locally, many of the investors are purchasingrnhomes to rent until the market turns around then possibly looking to sell in arnfew years. Yes, at this point renting homes is a better option than flippingrnbecause the gap between what an investor can buy a house, fix it and flip itrndoes not cover the cost of re-selling it,” 

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