Investors Beating Other Home Buyers to the Closing Table
If you’re in the market to purchase a home, it looks like you might need to beat out other investors first.
CoreLogic’s new report, “Investor Home Buying,” shows that home purchasing activity among investors has reached the highest level in the past two decades.
When one thinks of investors, most think of powerhouse companies coming in – however, the increase is mostly from smaller investors stepping into the ring.
Small investors, referred to sometimes as “mom-and-pop” investors, are those who purchase 10 homes or fewer a year. This group has grown from 48% of all investor-purchased homes in 2013 to more than 60% in 2018.
Larger investors – those who purchase more than 101 homes a year – have pulled back and only compromise 15.8% of purchases. Medium-sized investors – those who purchase between 11 and 100 a year– have dropped from 30% in 2010 to 22% in 2018.
With the surge in smaller investors making their way into the housing market, it’s given first-time homebuyers a bit more competition. Starter homes purchased by investors peaked at one in five homes over the last two years.
Here are the markets with the highest investor activity in 2018:
- Detroit: 27%
- Philadelphia: 23%
- Memphis: 19%
- Long Island: 18%
- Atlanta: 18%
- Des Moines: 17%
- Baltimore: 17%
- Camden: 16%
- Cleveland: 16%