COLORADO SPRINGS — A real estate trend is creating unwelcome competition for would-be homebuyers.
Local realtors say companies are buying up homes and immediately putting them back on the market or renting them out.
"Investors are homebuyers' main competition right now," said Merissa Rains, Colorado Springs Realtor.
She says it's getting more difficult for homebuyers to compete with investors.
"The majority of these investors are coming with large, over asking price cash offers," said Rains.
Making it hard for the average family to get their dream home.
"They can't compete with that without an appraisal gap and I don't know a lot of first-time homebuyers that have cash on hand," said Rains.
According to El Paso County tax records, corporations such as Home Partners of America bought over 1,000 homes. Zillow bought almost two hundred, but the company isn't holding them.
Zillow’s home buying and selling program, Zillow Offers, empowers movers and limits the stress involved in a traditional home-selling process. We pay market value for every home we purchase and list the homes back on the market quickly at market value.
Rains says it's investors making the biggest impact to the market.
"If this continues and investors continue buying these properties and turning them into rentals then unfortunately it will take home ownership off the table for some folks," said Rains.