Investors are continuing to make their impact felt in both high-end and affordable housing markets, according to Realtor.com’s Investor Report Mid-Year Update.
While overall home sales declined 4.2% year-over-year in the second quarter, investor purchases fell by only 2.7%. Investors comprised a 10.8% share of all second quarter homebuyers, up slightly from 10.7% from one year earlier.
Realtor.com determined that median investor purchase prices soared above the typical local sales price in Western and coastal states. – In Montana, the median investor purchase price was 35.1% higher than the state’s median sale price, followed by Utah (+33.7%), California (+23.3%), New York (+12.3%) and Vermont (+3.2%).
Investors in more affordable states were focused on lower-priced and entry-level homes. The largest gaps between investor and overall purchase prices were seen in Michigan (-53.1%), Maryland (-45.4%), Virginia (-45.0%), Delaware (-41.4%), and Wisconsin (-40.7%).
“Even as investors pull back from pandemic-era activity, they’re facing fewer headwinds than many typical buyers,” said Danielle Hale, chief economist at Realtor.com. “With affordability still stretched and inventory tight, many would-be buyers remain sidelined, giving investors a larger share of the market and, in some areas, more influence over prices. As a result, investor activity can amplify price pressures, especially in markets where their purchases concentrate in already competitive price ranges.”
