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Are investors dipping their toes back into income property?

Posted by Jolenta Averill on Friday, March 13th, 2009 at 4:26pm.

are investors dipping their toes?After what has amounted to a real dry spell, this week has reaped more calls about  income property than about any other type of real estate in months. Specifically, I've been getting a lot of calls about owner-occupied income property. My question is: could this signal the beginning of a turnaround in Madison WI income property?

There were 87 income properties sold in Madison in 2008. That's an implied absorption rate of about 7.25 properties sold per month. The median sales price was $233K. So far this year, there have been 7 sales of income property in Madison at a median price of $191,666. So the median price is down and so far this year the absorption rate is down too. At the moment it's .583 properties per month. Admittedly not very impressive. But it's still early days for the 2009 real estate market so we'll have to re-evaluate things in another couple of months to get a clearer picture of the trend. In any case, I'm pleasantly surprised that the interest level in owning and occupying income property seems to be improving, at least based on the calls I've gotten this week.

Please call Jolenta Averill at Lake & City Homes Realty at (563) BUY-SOLD (563-289-7653) for more information about buying and selling income property in Madison WI and Dane County. We look forward to the opportunity to help you locate the homes that fit your lifestyle!

Hi, and welcome to our Madison real estate blog. Whether you're a consumer, journalist or Realtor, we encourage you to share your thoughts by leaving a comment. Here you'll find relevant local and national real estate information, as well as market statistics, insight, and information about a variety of neighborhoods and real estate listings. If you'd like more information about anything in particular, please use the contact form and I'll be happy to help.

Jolenta Averill, Principal
Lake & City Homes Realty
(563) BUY-SOLD

3 Responses to "Are investors dipping their toes back into income property?"

Jolenta Averill wrote: <!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body><p>Quick Update: this week's calls (3/16/09-3/21/09) were overwhelmingly from investors, income property buyers, and home buyers interested in buying income property to owner-occupy and then rent out when they leave the area. I even got a call from a property manager who is looking for a home to rent out or flip. Again, I have not gotten this volume of calls from income property buyers for the last six months at least. And with rates this low (I just locked in at 4.5% myself!) it seems clear that investors are coming back into the market. The savvy buyer would be well-advised to get while the gettin' is good (before the speculators drive the prices back up!).</p></body></html>

Posted on Saturday, March 21st, 2009 at 8:48pm.

Panama city condos for sale wrote: <!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body><p>Jolenta,

We are seeing a significant increase in investors in condos in our area lately as well. With prices lower then they have been in years, there is quite a bit of interest in these units as rentals and vacation homes.

Best of luck.

Jennifer</p></body></html>

Posted on Sunday, March 22nd, 2009 at 7:33am.

Florida Foreclosures wrote: <!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body><p>Due to our overwhelming inquiries on income property, my partner and I also started a service for <a href="http://www.toppreconstructionmarket.com" rel="nofollow">Florida foreclosures</a>. The best way we are able to achieve good deals is to have a cash buyer and utilize their cash at the auction. In our market, we can typically find better deals at auctions than what you find with asset managers. But same here...our inquiries on income property has surged recently.</p></body></html>

Posted on Monday, April 27th, 2009 at 1:04pm.

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