A recent report from Redfin says real estate investors bought roughly 44k U.S. homes in Q1 2024, up 0.5% from one year ago – the first increase since Q2 2022. Redfin says with home prices and rents back on the rise and the initial shock of elevated mortgage rates in the rearview mirror, investors are easing their foot off the brake pedal. However, they do say investors and individual buyers are often duking it out over the same properties, according to Redfin agents – and in some cases, investors are losing.
“The balance of power between investors and regular buyers is changing…When there’s a bidding war for a home, it has become more common for the winner to be the person who actually plans to live in the home. Individual buyers are sitting on a lot of cash from the sale of their previous house and pandemic savings, so they’re willing to pay a little more up-front than investors, who have to be mindful of margins.” Said Amira Elgoneimy, a Redfin Premier real estate agent in New Jersey.
Some key points….Redfin says investors are:
- Making more money than before
- Buying up the biggest chunk of U.S. homes in almost two years
- Buying More Single-Family Homes Than Before
- Buying More Expensive Homes Than Before
- Also Buying a Record 26% of America’s Most Affordable Homes
Click here to read the full report at Redfin.
