Housing Prospects in Some Cities Hinge on Investors.

New York -- Last year, investors accounted for about a quarter of home sales transaction, helping to boost prices in hot markets like Las Vegas. But this year, investors could hurt housing markets if they move their money out as fast as they moved it in, according to economists.

For the most part, economists who participated in a recent Homeownership Alliance conference call expect healthy housing markets in 2006, even as the pace of home sales and house price gains slows down.

But the behavior of investors is one of the "wildcards" that could pose a risk to generally favorable outlooks for housing, according to David Lereah, chief economist for the National Association of Realtors. The NAR found last year that investors accounted for about 23% of home sales transactions nationally.

He said the investor share of home purchases likely will decline in hot markets this year. If the pullout is unusually widespread, "that could hurt housing," he said.

Many investors buying properties with plans to re-sell them quickly, profiting from home price appreciation, are financing their purchases ...