Real estate investors have bought more than 40,000 homes across the United States in the first quarter of 2024.
A new Redfin report published Wednesday noted that investors purchased roughly 44,000 homes in the first quarter of this year. It marked a 0.5% increase from the number of homes investors scooped up in the same period in 2023.
Specifically, Redfin investors bought 18.7% of homes sold in the first quarter of 2024, which amounts to roughly one in five homes sold during the period. That is up from 17.9% a year earlier and marks the highest share in nearly two years, the analysis noted. That being said, that is fewer homes than investors bought throughout the COVID-19 pandemic.
Redfin defines "investor" as any institution or business that purchases residential properties.
Real Estate Investors Now Buying More Single-Family Homes
Real estate investors purchased 3.9% more single-family homes in the first quarter of 2024, marking the first time the share increased in nearly two years. Overall, single-family homes represented 68.9% of investor purchases in the first quarter of this year.
In comparison, investor purchases of townhouses, condominiums, cooperatives, and multifamily properties declined. Condos represented 18.7% of investor purchases, while townhouses made up 7.2% and multifamily properties represented 5.3% of all purchases.
"When home prices got crazy high during the pandemic, investors sold out. But several months ago, they started to ramp back up. I'm not seeing a lot of home flippers in our market, but there are a lot of investors looking for single-family homes to rent out, which are in short supply." Dallas Redfin Premier agent Connie Durnal said in the report.
Furthermore, investors bought a record 26.1% of low-priced US homes sold in the first quarter. Affordable homes represented 47.5% of all investor purchases made in the first quarter.
"Any home that is entry-level is immediately pounced on," Brian Connelly, a Redfin Premier agent in Boston, said. "There's a mix of first-time homebuyers, investors, and second-home buyers all fighting for homes."
The analysis comes after lawmakers sponsored a bill with legislation that would bar Wall Street firms and investors from buying single-family homes in a bid to resolve the country's housing affordability crisis.
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