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O.C. Investors Pulling Up Home Sales

Orange County real estate may be having its worst year in decades, but investor activity is increasing its chances of a rebound, according to reports from market data provider DataQuick.

The report showed that in the past four months, an increasing number of investors have bought Orange County properties, helping to drive up prices and maintain a healthy level of market activity.

Investor buys peaked in May with a market share of 15.7%, exceeding the 2008 peak of 15.3% achieved in January. In August, sales went slightly down to 15%, although still way ahead of the 13.6% average recorded in the last 19 months.

The average number of investor sales also went up significantly, having exceeded 400 a month since May. In the last 16 months, records showed an average of 300 sales a month, making this year the strongest it has been since the recession.

The figures are taken from homes snapped up by “likely investors,” or absentee buyers whose tax bills are sent to other addresses. Of the 2,790 properties sold last month, about one out of seven fit this definition.

DataQuick researchers said, however, that investor activity played a more vital role throughout Southern California last month than in Orange County alone. In neighboring San Bernardino County, for example, investors accounted for 28% of August home sales.

Experts say this signals the need to invest as much in boosting investor activity as in consumer home sales. Since the start of the housing slump, much of the focus has been on inducing consumer lending and helping homeowners keep their homes.