The Hanley-Wood Market Intelligence Report has concluded that the ascendancy of the investor/cash buyer in the housing market peaked in 2011 and is on its way down. At the height investors accounted for 40% of the buyers in the market, up from 22% in 2006. By 2012 the percentage of cash buyers had edged down to 38%.
The number of homebuyers obtaining a mortgage increased 9% in the first half of 2012 over 2011. By contrast cash buying activity was flat during the same period. As more potential sellers are lifted out of negative equity, more homes will appear on the market. At the same time, continuing low interest rates will encourage more owner-occupants to purchase a home over the coming months.