Real estate investors are shifting their purchases to multifamily properties as the number of available distressed single-family homes for sale has been depleted over the past two years, according to the 2015 California Investor Survey by the California Association of Realtors.
In the past year 21% of investors purchased in multifamily properties, increasing from 19% in 2014 and 14% in 2013, according to the report.
Further, 80% of investor transactions were nondistressed, compared to 70% in 2014, reflecting the recovering housing market.
Consistent with these findings, the median sales price increased to$375,000in 2015, up from$320,000in 2014 and$292,000in 2013.
With a lack of inventory of lower-priced properties, investors are also shifting to higher-priced properties. The survey shows that of the properties purchased, 23% ranged between$501,000 to $1 million, up from 16% in 2014; 9% were above$1 million, up from 8% in 2014.
Price and location were among the top reasons that investors cited for buying now. Future development potential and size were also cited.