Investors bought more private homes than ever in the second quarter

0
10


FROM extreme rise in house prices last year, investors could not help but take advantage of the situation.

Investors – any institution or company that deal with real estate – bought 67,943 homes in the second quarter, up from 59,017 in the first quarter and 32,873 a year earlier, according to Redfin. Those purchases totaled $ 48.5 billion, up from $ 38.9 billion a quarter and $ 20.9 billion a year, although many investors retreated in the early stages of the pandemic.

Investor-owned units account for 15.9% of all U.S. property, up from 14.8% in Q1, 10.2% a year earlier and just below a record 16.1% in Q1 2020. IN rise in the cost of housing basically guarantees high returns, especially if the investor has access to cheap debt, Redfin senior economist Shekharyar Bohari said in the report. 74% of these investments were in cash purchases, which intensified the already intense competition.

“With investors pouring money into the housing market, it is becoming difficult for some home buyers to compete,” Bohari said. “Investors often pay in cash, which means they are often much more likely to receive winning the auction than buyers who take out a mortgage. “

Investors bought 26.5% of apartment buildings, 16.1% of single-family homes and 15.1% apartments that are sold in the second quarter. The activity was most active in the lower end of the market, as investors bought 21.2% of inexpensive real estate in the quarter, compared with 13.8% average and 13.5% expensive. This is consistent with rapid growth in the values ​​of start-up housing compared to more expensive housing.

“Investors are also enjoying growing demand in the rental market,” Bohari said. “Given that many Americans do not own real estate, it is easy for investors to make a profit by buying and renting real estate.”





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here