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Housing Prices Hit Record in March, But Surging Mortgage Rates Led to Decline in Number of Homes Sold, Redfin Reports

Investors Bought Up Record Share of Homes in Q1 While Buying Fewer Homes

Investors have bought up a larger share of America’s homes than ever before, according to Redfin. They purchased a record 20% of homes that sold in the first quarter, up from 19.2% one quarter earlier and 15.3% one year earlier. A decrease in overall home purchases nationwide allowed investors to increase their market share while purchasing fewer homes. 

The number of homes purchased by real estate investors in Q1 declined 11.5% from Q4 2021 and 16.5% from Q3 2021, when investor purchases hit a record high, according to a new report from Redfin. 

Redfin’s analysis is based on county records across 40 of the most populous U.S. metropolitan areas and defines an investor as a buyer whose name includes at least one of the following keywords: LLC, Inc, Trust, Corp, Homes. 

“Investor home purchases are falling for the same reason overall home purchases are falling: Surging interest rates and high housing prices have made it more expensive to get a mortgage and buy a home,” said Redfin senior economist Sheharyar Bokhari. “While roughly three-quarters of investor purchases are made with cash, investors are still impacted by interest rates because they often take out loans to get that cash.” 

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About Ted Jackson

A highly successful financial journalist, corporate financial writer and magazine entrepreneur with strong expertise in writing on fixed income and pass-through securities (ABS), finance and banking, the economy, economic developments, financial markets, investing and personal finance, the business of behavioral healthcare and more.

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