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Investor Purchases Account For Nearly 1 in 4 Home Sales in 2021

Home Prices
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EDITOR'S NOTE: The 2020-21 housing market boom may seem like a good thing for the U.S. economy, but a closer look at the data suggests otherwise, according to Mish Talk. Many people have known the pain of being outbid on a house in the last 18 months or so. Now, a new CoreLogic report shows that there is around a one-in-four chance that an investor or investment group outbid you, not a regular person or family. The report notes, “Large investors (those who retain 100 or more properties) are largely responsible for this rise. Of all investor purchases made in June 2021, 20% were made by large investors. This is much higher than 11% in 2020 or 14% in 2019.” This trend is a suspicious scenario and an incredibly frustrating one for people simply looking for a new home to live in.

Investors are buying huge percentages of existing home sales.

Share of Homes Going to Investors

Photo: Mish Talk

Corelogic reports Single-Family Investor Activity Surges in the Second Quarter.

Large investors (those who retain 100 or more properties) are largely responsible for this rise. Of all investor purchases made in June 2021, 20% were made by large investors. This is much higher than 11% in 2020 or 14% in 2019. Small investors (those who retain between 3 and 10 properties), have declined slightly and now account for less than half of investor purchases at 46% in June. Mid-sized investors (those who retain 11-99 properties) have stayed constant, oscillating around 35% percent in the past 30 months. The pandemic seemed to drive away large investors, but they are now making up their largest share of investor purchases seen in the past decade.

Of Investor Purchased Homes

Photo: Mish Talk

If you have been outbid on a home there's nearly a 1 in 4 chance it was to an investor or group of investors.

Originally posted on Mish Talk.

 

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