Investor purchasing of homes were down by 6% year-over-year in the first quarter, the lowest level since the start of the pandemic 2020. According to data from Redfin, the last time investors bought so few homes was in 2016.
Real estate investors purchased 19% of homes that sold in the first quarter, down slightly from 20% one year earlier. The median capital gain for a home sold by an investor was $196,618 in the first quarter, up 5.3% year-over-year. Investor purchases of low-priced homes fell 10% year-over-year to their lowest first-quarter level in a decade.
Investor purchases of single-family homes fell 6% year-over-year while purchases of townhouses fell 13%. In the condo market, real estate investor purchases fell 8% year-over-year in the first quarter to the lowest first-quarter level since 2015. Redfin noted that condos have become less attractive to investors as demand declines due largely to rising HOA fees and insurance costs.
Single-family homes made up 70% of all investor purchases in the first quarter, while condos made up 18% and townhouses made up 7%. Investors held 7.8% of all home listings in the first quarter, the smallest share in five years.
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