Home News Investors bought nearly half all Bexar homes sold in 2021

Investors bought nearly half all Bexar homes sold in 2021

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Investors, attracted by rising populations, prices and rents, surged nearly half of the homes sold in the San Antonio region last year. This meant intensifying competition with future buyers in markets where demand had already exceeded the supply of homes for sale.

This was more than 41% of sales in Travis County, where Austin is the county seat. 38 percent of Harris County, Houston is the county seat. It’s 43 percent in Dallas County. In Tarrant County, where the county seat is Fort Worth, about 52 percent of homes sold last year were directed to investors.

San Antonio’s population is growing rapidly and is attractive to investors because it is relatively affordable compared to other major Texas cities. National Association of Realtors Members..

Real estate is attracting investors looking for alternatives to stock market volatility, rising interest rates and rising inflation. She said many are turning homes for rent, which offers more “hedges” to those factors.

National Association of Realtors Subscribers Association used property records from Data company Black Knight Estimate the market share of institutional investors for overall home sales. It defined such a buyer as a company, company or limited liability company.

Nationally, investors bought 13.2% of homes sold last year, up from 11.8% in 2020. The median they paid was generally 26% lower than the state median.

The percentage of such buyers increased in 84% of the state. Texas had the highest market share at 28%, followed by Georgia at 19%, Oklahoma at 18% and Alabama at 18%.

More people are moving to the city of Sunbelt, rising house prices and rents, and lower vacancy rates, which makes it attractive to investors, Colorado said.

“This is happening in the context of a very tight housing market,” she said. “Given the supply situation already, the entry of institutional investors is only building up the barriers and challenges for first-time buyers to step into the door to home ownership.”

During the coronavirus pandemic, inventories plummeted and home prices and rents skyrocketed.

According to the report, investors tend to buy homes in growing areas where the housing and rental markets are strong, household composition is increasing, and the income and concentration of millennial, renters and people of color are high. there is.

It is reported that counties with a higher percentage of corporate buyers than the national average had twice as many black families as counties with few such buyers.

The association investigated about 3,644 realtors and found that homeowners offered cash and sold it to investors for buying real estate “as is”.

Approximately 76% of respondents said that 2021 had more investors in the market compared to three years ago, and 42% said that these buyers usually bought homes that needed rehab. I did.

Of the homes purchased, respondents said that about 42% were rented and 45% were resold.

Investors who buy homes “take away the stock available to homeowners,” but adding more rental homes “increases the stock of rental homes,” a report from the Association of Real Estate Agents said.

“We are short of housing,” said Colorado.

She expects institutional investors to buy more real estate, as interest rates and inflation are still rising and there is ample demand for housing, especially among millennials.

“I think the share of institutional investors will continue to grow for at least the next two years,” she said.

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