Investor buyers are back and help explain some of the resurgence in sales that have been seen in many markets. Investor sales now constitute nearly 26% of total sales in the 53 markets where John Burns Real Estate Consulting tracks this statistic, which is higher than the peak of 24% in 2005-2006 and a considerable rise from just 21% in 3Q-2008.

According to John Burns Consulting, "Our conversations with investors reveal that many are looking to rent the properties they buy, as opposed to flipping them as was common in the up-cycle, although there are flippers this time around as well. With the cost of homeownership falling to or even below rental parity in many markets, investors are increasingly able to make these investments cash flow positive by making a large down payment."

With limited mortgage availability, investors are generally required to make large down payments, so most investors will probably not be forced to sell under duress and the odds of the house being worth less than the mortgage are very low. If investors flood the market to take profits, then housing will have rebounded - so increasing investor activity is a positive scenario.