Investors buying homes
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Investors buying homes (by Kevin [FL]) May 17, 2024 6:20 AM
       Investors buying homes (by NE [PA]) May 17, 2024 6:31 AM
       Investors buying homes (by Ray-N-Pa [PA]) May 17, 2024 8:01 AM
       Investors buying homes (by Deanna [TX]) May 17, 2024 9:18 AM
       Investors buying homes (by Vee [OH]) May 17, 2024 9:25 AM
       Investors buying homes (by Nicole [PA]) May 17, 2024 2:31 PM
       Investors buying homes (by S i d [MO]) May 17, 2024 2:31 PM
       Investors buying homes (by plenty [MO]) May 17, 2024 6:37 PM
       Investors buying homes (by MAT [PA]) May 18, 2024 7:47 AM
       Investors buying homes (by Rudy [MD]) May 18, 2024 9:45 AM
       Investors buying homes (by Heartland [NC]) May 19, 2024 8:59 AM

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Investors buying homes (by Kevin [FL]) Posted on: May 17, 2024 6:20 AM
Message:

Investors are buying a record share of affordable homes

• Investors bought a record 26.1% of low-priced homes last quarter: Redfin

• Overall, investors purchased nearly $32 billion worth of homes in Q1

• Lawmakers have introduced legislation to limit corporate investors

Updated: May 16, 2024 / 05:16 PM CDT

FILE – A For Sale sign is posted in front of a home in Sacramento, Calif., Thursday, March 3, 2022. On Thursday Freddie Mac reports on this week’s average U.S. mortgage rates. (AP Photo/Rich Pedroncelli, File)

(NewsNation) — Everyday Americans are struggling to find affordable homes, and competition from investors has made it even harder.

Investors bought a record 26.1% of low-priced homes sold in the first quarter, according to a new Redfin analysis.

“Any home that is entry-level is immediately pounced on,” Brian Connelly, a Boston-based Redfin agent, said in the report. “There’s a mix of first-time homebuyers, investors and second-home buyers all fighting for homes.”

Overall, investors bought $31.7 billion worth of homes in the first quarter, accounting for 18.7% of U.S. homes sold — the highest share in nearly two years.

In cities like Miami (30.6%), Cleveland (24.6%) and Jacksonville (24.5%), the share of investor purchases was even higher.

To put that in context, according to Redfin data: 20 years ago, investors accounted for less than 10% of home purchases.

The recent uptick in investor activity has been driven by single-family properties, which have become more attractive due to rising rents.

“I’m not seeing a lot of home flippers in our market, but there are a lot of investors looking for single-family homes to rent out, which are in short supply,” Dallas-based Redfin agent Connie Durnal said.

Elevated mortgage rates have also favored investors over regular buyers since most, nearly 70%, pay in cash, Redfin said.

Lately, investors have been seeing higher profits, which has enticed more to come off the sidelines. The typical home sold by an investor in March went for 55% more than they bought it for, up from 46% a year ago, the report found.

The latest findings highlight the ongoing frustration many Americans are feeling about the housing market. Today, just 21% of people think it’s a good time to buy, tying the lowest level ever, according to Gallup.

For its analysis, Redfin defined investors as any institutions or businesses that purchase residential real estate. These were identified on county sale records through keywords like “LLC,” “Inc,” “Trust,” “Corp,” and “Homes.”

Federal and state lawmakers have proposed legislation that would limit institutional investors in the housing market.

Congressional Democrats introduced a bill in December that would ban hedge funds from buying and owning single-family homes in the U.S. It would also require them to sell off all the single-family homes they currently own over ten years.

--181.214.xxx.xx




Investors buying homes (by NE [PA]) Posted on: May 17, 2024 6:31 AM
Message:

Sounds more like a made up excuse to introduce legislation than reality. I would like to meet these investors, because they’re probably not any good. All you’ve read here the last four or five years is how there is a lack of deals because everything is so overpriced. --174.240.xxx.xxx




Investors buying homes (by Ray-N-Pa [PA]) Posted on: May 17, 2024 8:01 AM
Message:

Now who would have ever thought that outlawing foreclosures for two years would result in a surplus of lower end properties later on? Who do you suppose who would be buying lower end units?

Obviously is couldn't be the law maker's fault, so let make a new law and wonder about the consequences later. --24.101.xxx.xxx




Investors buying homes (by Deanna [TX]) Posted on: May 17, 2024 9:18 AM
Message:

Is "low-priced homes" a euphemism for something else? Because around here, there are no "low-priced homes." What you save in closing costs, you end up paying in replacing major systems. Houses that don't require major renovations to become functional/habitable are not low-priced.

It hasn't been an issue in the last 15 years, because they're not the sort of houses that owner-occupants are interested in, anyways. Owner-occupants want turnkey HGTV with good finishes, good paint, good light fixtures, move-in-ready.

Only 21% of people think it's a good time to buy because it isn't a good time to buy. Prices go up all the time, but around here, homes are 3 or 4 or 5 times their price from maybe 10 years ago. And that's just not "good houses", but that's "most houses", even the crummy ones.

But the bottom of the barrel always exists and is frequently replenished. --137.118.xx.xxx




Investors buying homes (by Vee [OH]) Posted on: May 17, 2024 9:25 AM
Message:

I can say the City of Cleveland has taken a stand against owners of rental homes, HUD president Marcia Fudge was raised in the area and when she retired the lead campaign has left over 80,00 HUD homes set for demolition creating a impact in the homeless numbers because maintenance is costing more than the house is worth. --184.59.xxx.xx




Investors buying homes (by Nicole [PA]) Posted on: May 17, 2024 2:31 PM
Message:

...The typical home sold by an investor in March went for 55% more than they bought it for, up from 46% a year ago,....

I wonder why they haven't figured out that these homes have been updated and rehabbed while the investors owned them. And yes, they are making a profit off that work. Many folks in today's climate want fresh, clean, updated.

I am financially secure in my life and I have worked since I was 14 years old. I just had my original 1955 kitchen cabinets replaced. they were in excellent condition. The cabinet company was amazed at the workmanship and quality of those. Many potential buyers would have walked immediately because the kitchen was ugly ... functional, high quality but very dated. Me, I didn't care and I finally spent the money because whenever I move or croak the kitchen would need to be redone for sale so I decided to look at a nice pretty kitchen for a few years before I move on.

I have a friend about to list his home for sale. He's been there for 25ish years. Flooring is in bad shape. He wanted to give a flooring credit. Realtor has convinced him to redo the floors because of the number of buyers who would walk without the flooring redone ... bottom line money would be the same but number of potential buyers goes way up --98.237.xxx.xx




Investors buying homes (by S i d [MO]) Posted on: May 17, 2024 2:31 PM
Message:

I'm not surprised at all by who is pushing this agenda: Democrats.

Here's the kicker though: for every corporate Buyer, there is also a private individual Seller. In most cases the Buyer is offering the best price and terms, or the Seller would sell to someone else.

So what's really happening here is Democrats want to force homeowners to sell their property for less than they can otherwise get. Frame it that way, and we will see how many of the 2/3 of Americans who own their own homes feel about that. My guess is most would be pissed. They're find with "stopping corporations from buying homes" until it comes time for them to sell and it dawns on them.... "Oh yeah, this means I can't get as much."

I don't know too many homeowners who are upset about the high cost of housing, because that's wealth in their portfolio.

The solution, as always: build more entry level housing. To do that, restrictions and zoning needs to be changed to make it a lucrative market. Builders will build when they know they can make a good profit.

--184.4.xx.xx




Investors buying homes (by plenty [MO]) Posted on: May 17, 2024 6:37 PM
Message:

Investors also sell houses when the market is hot. --172.59.xxx.xxx




Investors buying homes (by MAT [PA]) Posted on: May 18, 2024 7:47 AM
Message:

What's S i d said. --108.52.xxx.xxx




Investors buying homes (by Rudy [MD]) Posted on: May 18, 2024 9:45 AM
Message:

Well if you want to make it out here Sid (MO) Rep. Anyone with good cent knows if you buy investment properties you want a real estate return. --96.244.xxx.xxx




Investors buying homes (by Heartland [NC]) Posted on: May 19, 2024 8:59 AM
Message:

Well said, S I D! --45.37.xxx.xxx



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