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Californians moving away from single-family homes

Staff writer |
With the depletion of available distressed homes on the market over the past two years, more investors are shifting to investing in multifamily properties and away from single-family homes.

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TJis is according to a California Association Of Realtors (C.A.R.) survey of its members about their interactions with investors.

C.A.R.'s 2015 Investor Survey found 21 percent of investors purchased in multifamily properties in the past year, up from 19 percent in 2014 and 14 percent in 2013.

Eighty percent of the transactions were non-distressed, up from 70 percent in 2014, reflecting the recovering housing market.

Additionally, consistent with investors purchasing more equity and multifamily properties, the median sales price increased to $375,000 in 2015, up from $320,000 in 2014 and $292,000 in 2013.

Investors also turned to higher-priced properties given a lack of inventory of lower-priced properties. Twenty-three percent of investment properties purchased ranged between $501,000 to $1 million, up from 16 percent in 2014, and 9 percent were above $1 million, up from 8 percent in 2014.

Among the reasons investors cited for buying now include good price (39 percent), followed closely by good location (38 percent), future development potential (9 percent), and size (7 percent).

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