Investors are slinking away from the real-estate market as home-price growth slows, and the possibility of price drops appears on the horizon.
Investor purchases of homes in the U.S. fell by 45.8% year-over-year in the fourth quarter, according to a new report from real-estate tech company Redfin RDFN . The overall drop in mortgage rates and a possible bottoming of home prices may invite investors back into the market, but “it’s unlikely that investors will return with the same vigor they had in 2021,” Sheharyar Bokhari, senior economist at Redfin said.
Though investors have “pumped the brakes” on buying homes, it doesn’t mean their market share has dropped, since home buyers have also paused their activity. Mortgage rates have dropped, but since they’re still elevated, and home prices have not yet dropped significantly, people are finding it hard to afford to purchase houses right now.
According to Redfin, investor home purchases fell the most in Las Vegas by 67% year-over-year in the fourth quarter. “A lot of investors are on hold because they still see home prices declining,” Elena Fleck, a Palm Beach, Fla.-based real estate agent with Redfin, said.
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Source: Variety - 🏆 108. / 63 Read more »