In the first three months of 2024, real estate investors accounted for nearly 27% of U.S. home sales. This is the highest percentage in at least five years, reflecting a market where traditional buyers are hindered by rising prices and high borrowing costs. Investors bought 265,000 homes during this period, up 1.2% from the same timeframe last year. The U.S. housing market has been declining since early 2022, leading to sluggish sales and increasing inventory, benefiting cash-affluent investors who can bypass expensive mortgage rates.
Nearly 27% of all homes sold in the first three months of the year were bought by investors, the highest share in at least five years. Between 2020 and 2023, the average investor share was 18.5%. Investors bought 265,000 homes in the January-March quarter, reflecting a modest annual increase of 1.2% from the previous year. The increase is largely due to traditional buyers facing affordability issues as the housing market remains sluggish.
The U.S. housing market has been in a sales slump since early 2022, when mortgage rates began to increase from low pandemic levels. Home sales were at their lowest in nearly 30 years last year and continue to be sluggish, discouraging prospective buyers due to rising mortgage rates and home prices. As sales slow, homes are taking longer to sell, increasing inventory and providing opportunities for investors.
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