Real estate investors are purchasing nearly 27% of homes sold in the first quarter, marking the highest share in five years. The overall share of investor purchases averaged 18.5% from 2020 to 2023. Investors acquired 265,000 homes in early 2024, reflecting a 1.2% increase from the previous year. The U.S. housing market has been sluggish since 2022 due to rising mortgage rates and prices, leading to longer property sales and increased inventory. This environment allows cash buyers to thrive as traditional buyers face affordability challenges.
Real estate investors accounted for nearly 27% of all homes sold in the first three months of the year—the highest share in at least five years, according to a report by BatchData.
Investors bought 265,000 homes in the January-March quarter, reflecting a modest annual increase of 1.2%. This trend is attributed to rising prices and high borrowing costs hampering traditional buyers.
Home sales in the U.S. have slumped since early 2022 due to climbing mortgage rates, leading to the lowest sales levels in nearly 30 years and an increase in home inventory.
As traditional buyers struggle with affordability, investors with cash and financing advantages are stepping in to maintain transaction volume in the real estate market.
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