With mortgage rates beginning to moderate, investors are back and snapping up the most wanted homes on the market.
Investors bought 26% of America’s lowest-priced homes in Q4 2023, according to a new report from Redfin, a record-high share and up from 24% at the same time last year.
By comparison, they bought 13.6% of mid-priced homes that sold and 15.9% of high-priced homes, both increases.
Investors are more choosey now than they have been in recent memory, looking for lower-cost homes they can rent or flip for better profits.
“I get tons of emails every day from investors looking for properties, but of course, they only want homes that are under market value, which are hard to come by.…
By KIMBERLEY HAAS
Democratic lawmakers introduced a bill this week that would restrict tax breaks for corporate investors that purchase large quantities of homes.
If passed, the Stop Predatory Investing Act would prohibit investors who acquire 50 or more single-family homes for rental purposes from deducting interest or depreciation on those properties.
U.S. Sen. Sherrod Brown (D-Ohio), chair of the Senate Banking, Housing, and Urban Affairs Committee, says investors funded by Wall Street buy up homes that could have been sold to first-time homebuyers. He claims they rent them out at higher rates, neglect repairs, and then threaten families with eviction.
“Our bill will help prevent corporate landlords from driving up local housing prices and put power back in the…
Home flipping profits fell across the country in 2021 despite a surge in the number of houses flipped, according to ATTOM Data Solution’s 2021 U.S. Home Flipping Report. The number of single-family homes and condos flipped in 2021 was 323,465, up from 257,091 in 2020 (+26%). This is the largest number of flips since nearly 334,000 homes were flipped by investors in 2006. In Q4 2021, there were 96,773 homes flipped, a rate of 6.8%. But flips accounted for only 5.5% of all home sales last year, falling in 53% of the markets analyzed by ATTOM. They are down from 5.5% in 2020 and 6.1% in 2019. The Northeast and West saw the biggest declines in number of homes flipped.…
