California is continuing to buck a US trend of stalling sales, with real estate investors looking to snap up cheap properties in the state.
Residential investors are the most rapidly growing population of buyers in the area, RightNow Consulting has said.
The percentage of residential purchases by investors has risen from 6.74 per cent to 11.41 per cent since July 2007 – an increase of 69 per cent in year over year proportional activity.
Buyers in the sunshine state are prevailing despite fewer financing options and “bad publicity” relating to the housing market, RightNow said.
Company chief executive Dan Miller said:
“We wondered whether investment activity might have increased in California given current market dynamics, but were truly surprised by these results.
“Not only did the percentage of residential purchases by investors increase, but so did the number of investor transactions, increasing 16 per cent from July 2007 to July 2008.”
RightNow said the figures were an “encouraging nod” to the perceived long-term value of Californian real estate.
Favourable interest rates and declining prices could see the Californian market stage a sooner-than-expected recovery, the company added.
Last month some buildings experts said rising gasoline prices in the US were acting as a sales tool for inner-city real estate, with some projects in downtown San Diego selling quicker than expected.
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