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ServicesMay 18, 2021

Investment Property Boom: Investor Appetite Surges

Analysis of investor surge in residential market and impact on appraisal values and market dynamics.

By Paul Myers

The 2021 investment property boom saw institutional investors account for roughly 25% of transactions, competing with homebuyers using cash purchases and waived contingencies that pushed prices higher across the board.

Investor Activity

  • 25% of transactions investor-buyers
  • Cash purchases common
  • Waived contingencies standard
  • Price insensitive

Investors competing with homebuyers.

Market Impact

Investor purchases reduce homebuyer inventory.

Prices driven up by investor competition.

Appraisal Considerations

Investment properties valued on rental income + appreciation potential.

Income approach often weights equally with market approach.

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Investment property appraisal? Investor market surging. Contact me.

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