Home News Investors snap up homes at a furious rate — in some regions they bought as many as 20% of houses for sale

Investors snap up homes at a furious rate — in some regions they bought as many as 20% of houses for sale

by admin
0 comment

First-time homebuyers who struggled to get real estate this spring may have been competing with well-financed investors.

Investor buying share fell from its February peak of 9.7%, but investors scooped up 9.5% of homes in April, up 64% from the same period in 2019, and homes purchased at the same time. It has doubled its share.According to the new, in 2015 Analysis from Realtor.com.

Many paid in cash.

In a statement, Realtor.com Chief Economist Daniel Hale said, “In the short term, everyday homeshoppers are prepared to face fierce competition with groups that often have deep pockets full of cash. Need to be done. ” “But when overall demand is chilling, sellers may benefit from strong offers from investors.”

According to Realtor.com, this trend was especially severe in the South. In the Charlotte-Concord-Gastonia metropolitan area in both North Carolina and South Carolina, 20% of homes sold in the year ending April were directed to investors. The share of investors buying homes in Branson, Missouri was far behind at 19.5%.

In addition, according to Realtor.com, in eight of the top 10 metropolitan areas of investor purchases in April 2022, investors purchased median prices below the median overall purchase price for the region. I paid the price. The two exceptions to Branson and Summit Park, Utah are vacation destinations.

(Realtor.com is operated by News Corp
+ 0.29%

MarketWatch, a subsidiary of Move Inc., is a unit of Dow Jones, a subsidiary of News Corp. )

In that analysis, Realtor.com defines an investor as an absentee landowner or a buyer or seller who is an absentee landowner and has a name that identifies it as a company or company. As a result, cash buyers are overvalued in the data, as small investors tend to buy under their personal names, according to Realtor.com.

Nonetheless, this data could further scrutinize real estate investors who have already been under the microscope for purchasing practices since the 2008 financial crisis.Democratic lawmakers in particular We are concerned that large institutional investors will ambush the majority of non-white areas.

You may also like