Investor Home Purchases Slump 17% From Pandemic Peak as Interest Rates Rise

Source: Redfin — 

Real estate investors bought 77,829 homes in the metros tracked by Redfin in the first quarter, down 11.5% from the fourth quarter of 2021 and 16.5% from the third quarter of 2021, when investor purchases hit a record high. On a year-over-year basis, investor purchases were up 30.7%—the smallest annual gain in a year.

Still, investors bought up a larger share of America’s homes than ever before. 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 even while purchasing fewer homes.