Prospective homebuyers are entering some markets today to find it rife with competition and the pickings slim. While many put off home purchases during the financial crisis, Wall Street investors dove right in and snapped up all the good buys while they were cheap. This was especially prevalent in areas where housing prices bottomed out during the recession. And now, with interest rates historically low and the economic recovery under way, average consumers want in -- but they're running into fierce competition over what's left to choose from.
A recent discussion on HuffPost Live -- shown in the video above -- looked at why real estate investors make much more attractive buyers than others in the housing market. Said Matthew Ong, a retail analyst at Nerd Wallet: They bid in cash, in full and higher than the asking price. Investors also have the funds to give homes much-needed repairs. But instead of selling those properties they rent them out, altering the social fabric of the neighborhoods as people begin to move in and out more frequently.
"The problem here is that investors buy when something is cheap, whereas consumers buy when they're ready," Ong said.
But waiting for buyers to be ready is not how the market works, so average consumers might need to be prepared for a long, hard search.
See more news about homebuying:
More Young Couples Say 'I Do' to Buying a Home Before Marriage
Investors Betting on Housing Recovery Big Time
Where Castles Offer Big Bang for Your Buck
More on AOL Real Estate:
Find homes for rent.
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Follow us on Twitter at @AOLRealEstate or connect with AOL Real Estate on Facebook.