A new report from Redfin says that in Q2 2023 investor home purchases fell 45% from one year ago – which they say is the biggest decline since 2008. Real estate investors bought roughly 50k homes in Q2, the fewest of any second quarter in seven years, with the exception of the start of the pandemic. To get their numbers, Redfin analyzed records across 39 of the most populous U.S. metro areas. They define an investor as any institution or business that purchases residential real estate. Indeed…
Some key points:
- The drop in investor purchases outpaced the 31% decline in overall home sales.
- Investor market share is down to 16% after hitting an all-time high of 20% in the first quarter of 2022.
- Investors are also making up a smaller share of the home-selling pie, with 8% of new listings owned by investors, down from a peak of 13% at the end of 2021.
- Investors are gravitating to lower priced homes and single-family homes.
“Most investors who are still flipping homes are making money. The typical home flipper who sold a home in June sold for 61% ($188,448) more than their initial purchase price. Though that’s a substantial gain, it’s down from a 69% ($199,946) premium a year earlier.”
Click here to read the full story at Redfin.
