: Investors snap up homes at a furious rate — in some regions they bought as many as 20% of houses for sale

by | Jul 29, 2022 | Stock Market

First-time homebuyers who struggled to snag a property this past spring might have been competing with deep-pocketed investors. While the share of investor purchases has fallen from its February peak of 9.7%, investors still scooped up 9.5% of homes in April, up 64% from the same time in 2019 and just about double the share of homes they purchased at the same point in 2015, according to a new analysis from Realtor.com.  Many paid in cash.

“In the shorter term, everyday home shoppers should be prepared to face tough competition from a group that has deep pockets, often filled with cash,” Realtor.com chief economist Danielle Hale said in a statement. “But sellers may benefit from investors making strong offers, at a time when overall demand is cooling.” The trend was particularly acute in the South, according to Realtor.com. In the Charlotte-Concord-Gastonia metropolitan area, which falls in both North Carolina and South Carolina, 20% of homes sold in the year ending in April went to investors. The share of investors purchasing homes in Branson, Missouri, was close behind at 19.5%.What’s more, in eight of the top 10 metropolitan areas for investor purchases in April 2022, investors paid a median purchase price lower than the area’s overall median purchase price, according to Realtor.com. The two exceptions — Branso …

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