In a recent analysis by Ben at Inman, it’s evident that property investors in the United States are displaying remarkable resilience and optimism amidst the turbulent housing market. Reports indicate a surge in investor activity, with the share of homes purchased by investors reaching a new high in the fourth quarter of 2023.
According to CoreLogic’s latest report, the share of single-family homes purchased by investors peaked at 28.7 percent, surpassing the previous record set in February 2022. This surge, coupled with consistent monthly purchases ranging from 79,000 to 80,000, reflects investors’ unwavering confidence in the market, despite challenges such as high interest rates and low inventory levels.
In contrast, owner-occupant purchases have dwindled, highlighting investors’ adaptability amidst market uncertainties. The sentiment among real estate investors remains cautiously optimistic, as revealed by the RCN Capital and CJ Patrick Company report. A significant portion of respondents expressed positivity about the current landscape compared to a year ago, with over 41 percent anticipating improvements in the next six months.
However, the fourth quarter witnessed declines in both home flipping and iBuyer activity. Only 12 percent of investors who purchased homes in March 2023 resold them by December, reflecting a slowdown in flipping due to sluggish appreciation and high interest rates. Similarly, iBuyer purchases plummeted in 2023 compared to previous years, possibly due to overzealous spending during the pandemic and subsequent inventory challenges.
This nuanced outlook suggests that while challenges persist, investors are adapting their strategies to navigate the evolving market conditions.