Investors purchased a record 26% of cheap houses last quarter
"If the Fed cuts interest rates later this year as expected, we may see more investors wade into the housing market," Redfin said.
www.businessinsider.com
A lot of people want a cheaper home, but they're hard to come by in this market.
Homebuyers looking for an affordable house or a so-called starter home might be crowded out a bit by investors who are also on the hunt.
Redfin reported on Wednesday that property investors snapped up 26.1% of low-priced homes that were for sale in the fourth quarter, hitting a record share.
Zooming in, low-priced homes accounted for 46.5% of investor purchases, with mid-priced homes at 24.6% and high-priced homes at 28.8%.
"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. When they find those properties, they pile in," said Carrie Caruthers, a Redfin Premier real estate agent in California, adding that she has also observed an increase in foreclosures, which also draw big demand from investors as they tend to be cheaper than other homes on the market.
The truth is that these are largely institutional investors and they are signaling a distrust for paper assets and running to the safe harbor of real estate because it will always rebound following a recession/depression.
People have no idea how bad it's about to get but that's a story for another day.
But look, if a large investment firm is offering me asking plus X% cash and the first time home buyer is offering me asking plus a bunch of bull shit conditions because they can't afford the needed upgrades on a 80 year old small home, who do you think I'd be selling to?
I'm in the house selling boat now and I know who I'd be selling to.....It's the one I can get the most money out of with fewer conditions......The same as it always was. It's not my fault that the monied buyers have changed.
