More Older Properties On The Market...Good Trend For Smart Real Estate Investors
Companies like Lowe's and The Home Depot may be really good bets right now if you are looking for a new stock for 2014. Why? Because America's housing stock is getting older and more and more homeowners as well as investors are buying fixer-uppers as well as choosing to update existing properties rather than buy new ones. On a national level housing stock is aging quickly and that can be a very good thing not only for home stores, but also for homeowners.
One other trend that is starting to show is that institutional investors have noticeably stayed away from older housing stock over the past 12 months in many locations. Older housing requires updating, which takes funds. They have the funds, but older houses are not part of their long-term plan. They want newer and bigger in many cases, which leave the older housing stock for individual investors and home owners. According to RealtyTrac’s Aging Home Analysis, more than 70 percent of the housing stock in the U.S. was built prior to 1990. An even bigger statistic though is the fact that over 60% of home sales last year were on properties built pre-1990.