Rising prices spur decline in investment-home sales in 2012

Investment-home sales dropped in 2012, after rising dramatically in 2011, the National Association of Realtors reported today. The drop may reflect last year's increase in home prices, which could have made properties marginally less attractive to investors.

"With rising prices and limited inventory, notably in the low price ranges, investors are likely to step back in coming years," said NAR Chief Economist Lawrence Yun in a statement.

Investment-home sales edged down 2.1 percent to 1.21 million in 2012 from 1.23 million in 2011, according to NAR's 2013 Investment and Vacation Home Buyers Survey. Investment-home sales accounted for 24 percent of all home sales in 2012, down from 27 percent in 2011, marking the second highest share since 2005, NAR said.

The increase comes after investment-home sales surged 64.5 percent in 2011, as home prices fell and rental rates rose.

NAR also reported that vacation-home sales increased 10.1 percent to 553,000 in 2012, from 502,000 in 2011.