Investors Are Buying Fewer Homes

 

 

Investors Are Buying Fewer Homes

 

Investors are buying fewer homes than pandemic peak.  What impact escalating interest rates will have on investors that buy homes to rent them out is to be determined, although first-quarter investor purchasing activity gives early indication that investors are slowing their pace of homebuying. Redfin Corp. found the number of homes purchased by real estate investors in the first quarter declined 11.5% from the fourth quarter of 2021. Despite that, investor purchases made up a larger share of the housing market, purchasing a record 20% of homes that sold in Q1, an increase from 19.2% in Q4 2021. Bokhari said the expectation is sellers aren't going to be able to sell their homes as quickly as they have, especially as they did last year, which'll result in price cuts. Investors may, therefore, be holding off to take advantage of better deals down the line.