The number of homes on the market being snatched up by investors has reached a record high according to a new report. According to Redfin, 18.4 percent of homes sold during Q4 2021 were bought by investors. This is the highest percent seen since record keeping began 22 years ago and up 12.6 from the same period the year prior. Investors are finding profits in increased rent prices and the competitive home market, giving them incentive to purchase more properties.
“While record-high home prices are problematic for individual homebuyers, they’re one reason why investor demand is stronger than ever,” said Redfin economist Sheharyar Bokhari. “Investors are chasing rising prices because rental payments are also skyrocketing. Plus, investors who ‘flip’ homes see potential to turn a big profit as home prices soar.”
In San Diego, the volume of homes purchased by investors was higher than the national average at 20.3 percent in the last quarter.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.125 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (877) 700-0942 and your questions may be featured in an upcoming article.
