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Real estate investors bought 87,500 homes in the United States in the second quarter of 2022, according to a new analysis from Redfin, up 11% quarter-on-quarter and 5.9% year-on-year.
The total for the second quarter was down from the all-time high of 93,700 recorded in the third quarter of 2021.
Overall, Redfin found that investors bought around 60,000 more homes per quarter in 2019 than before. the epidemic.
The study also found that joint venture investors started trading, but remained above pre-pandemic levels, with investors buying 19.4% of homes sold in the first quarter of 2022. It rose for almost two consecutive years.
“The decline in the overall real estate market is encouraging some investors and scaring off others,” said Sheharyar Bokhari, the chief financial officer of Redfin. “Business people, like other buyers, compete with high house prices.
There are also people in the market looking to convert their homes to rentals, as high rents help affect the value of their homes, and home values will increase over time.
Others are driven by price reductions from property developers looking to sell properties and added as the buyer pulls back.
Investors in the reversal market, however, shun the hope of low house prices due to the weather changing more quickly, as they may stand to lose when a re-registration is in six months or a year.
In dollars, investors bought $60.1 billion worth of real estate in the second quarter, compared to $50.5 billion in the first quarter and $54.5 billion in the same period last year.
Among homes sought by investors in the second quarter, about 35,000 low-income homes were down 6% from the previous quarter and 7.6% from the same period last year.
Investors, however, are still buying homes at lower prices than before the outbreak, as they were buying about 30,000 a month in 2019.
Investors bought about 28,000 mid-priced homes, up 25.3% from a year ago, but down from 31,000 in the third quarter of 2021.
However, that’s almost double the pre-pandemic level, as investors bought nearly 15,000 mid-priced homes per quarter in 2019. Companies bought around 25,000 premium homes, an increase of 8.9% last year.
- Buyers of single-family homes, the most popular property type seen by Redfin among investors, rose but remain well above the prior spread. Investors bought nearly 65,000 households in the second quarter, up 8.5% year-on-year, below the record high of around 70,000 seen in the third quarter of 2021.
- Investors bought about 14,000 homes, down 4.3% year over year, but up about 10,000 a month before the pandemic. • Investors purchased about 3,500 multi-family homes, down 4.1% year over year and up from about 3,000 per quarter before the pandemic.
- Investors bought 5,300 homes in the city, up 10.9% year-over-year from about 3,000 homes per quarter before the pandemic.
According to the area, investors are focusing on the North Florida city of Jacksonville, where the number of buyers rose more than 40% year-over-year in the second quarter.
In the second quarter, investors bought 31.9% of homes sold in Jacksonville, which saw the most transactions of any major city, according to Redfin analysis.
It was followed by Atlanta with 31.8% of homes purchased by investors, Las Vegas with 31.5%, Phoenix with 31.2%, and Miami with 29%.
Providence, Rhode Island is the most popular city for investors, with investors accounting for 7.3% of the market, followed by Washington, DC, with 8.1%. Montgomery County, Pennsylvania 8.3%; Seattle 8.7%; and Warren, Michigan 9.5%.
Reference Source: DS News
