Investor market share in home sales dropped to 15.9% in the third quarter, the lowest in four years but still close to pre-pandemic norms.
“It’s less appealing to buy homes to flip or rent out than it was at the start of the pandemic, when demand from both homebuyers and renters was robust,” Bokhari said in the report. “But it’s more appealing than it was last year, when soaring home prices and borrowing costs put a big damper on demand.”
Florida, a longtime hotspot for real estate investment, saw significant pullbacks. Investor purchases fell by 23.8% in Fort Lauderdale and 19.4% in Miami, reflecting higher home insurance costs and growing concerns about natural disasters.
Despite the challenges, some markets are bucking the trend. Investor activity surged in Las Vegas, where purchases jumped 27.6%, and Seattle, which saw a 21.8% increase. Investors continue to prioritize single-family homes, which accounted for nearly 70% of purchases in the third quarter, up from 68% a year earlier. By contrast, condo purchases dropped 11.4%, largely driven by declining demand in cities like Miami.
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