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It's not as if large-scale investors are buying up all the houses, as many might think.

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Buying a home right now isn’t easy. You search for listings, attend open houses, and sometimes miss out on your desired home because of more competitive offers. Some of my clients have told me, “Wall Street investors are buying up every house on the market,” and that there are no homes left. But is that really true?

 

The truth is, it’s not. While investors are part of the market, their share is actually smaller than you might expect. According to Redfin, the percentage of homes being bought by investors is quite low:

 



 

Most homes are being purchased by regular households.

In other words, for every six homes listed on the market, five are being bought by regular individual buyers, not large corporate investors. So, before getting too discouraged, take a closer look at the actual situation. You'll find that Wall Street may not be the big competitor you think it is.

 

Most investors are small-scale individual investors.

Although many people imagine large corporate investors, the reality is different. According to a recent report from CoreLogic, most investors are small-scale individual buyers who typically own fewer than 10 properties. This could be a neighbor who owns a rental or a vacation home, rather than a giant corporation with endless resources. In fact, only about 1% of the market is owned by large investors who own thousands of homes. The majority of the market is still dominated by individual or small-scale investors.

 

Investor purchases are decreasing.

On top of that, investor purchases have been declining. According to CoreLogic’s report:

In June 2024, investors bought 80,000 homes, which is a decrease from 112,000 in June 2023, and nearly a 50% drop compared to 149,000 homes in June 2021. CoreLogic predicts that this decline will continue until 2025.

So, the rumors about being outcompeted by investors in the market aren’t true. In reality, the percentage of homes being bought by investors is relatively small, and most of them are small-scale investors, with their activity on the decline.

 

Conclusion:

As I always say, don’t rely too much on rumors. It’s a good idea to consult with a professional and get a clearer picture of the situation.

 



 

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