Fed Atlanta concludes:
What this table implies is that institutional investors ramped up activity earlier this year and have indeed concentrated their investment activity within a handful of markets that were hit hard by the housing downturn. Acquisition strategies for these larger investors focus on mostly low-priced, distressed properties.
This makes sense. The markets hit hardest by the housing downturn are also the markets where distressed properties make up a significant portion of the available homes for sale. However, data from CoreLogic indicates that the share of distressed sales is steadily declining over time.Distressed sales are declining because these giants, and others, are picking up what is on the market. The housing downturn is over. From the supply side prices will be pushed higher. If Bernanke's new money printing gets into the system, prices will also be pushed higher from the demand side.