Institutions Grab a Record-High of Nearly 16% of US Home Sales
By Kurt Real Estate Oct 8, 2021
Residential real estate bought by companies or institutions hit an all-time high of 67,943 properties in the second quarter, according to Redfin, a Seattle-based online brokerage. That’s more than a twofold increase from a year earlier when the pandemic temporarily stymied the real estate market. With soaring home prices and rents, the heat of the market is fueling real estate companies’ appetite for houses, adding unwelcome competition for many homebuyers.
That 67,943 represents 15.9% of all the properties sold in the April-June quarter. The data, which goes back to 2000, includes all residential property types, including apartment buildings and condos. It excludes purchases by small, individual investors. When looking at only SFR home sales, companies accounted for 16.1% of all purchases in the second quarter, Redfin said. Ten years ago, it was 8.4%.
The trend adds challenges to many first-time buyers already facing stiff competition when the inventory of properties on the market is near all-time lows and prices continue rising.
The S&P CoreLogic Case-Shiller 20-city home price index climbed a record 19.1% in June from 2020, as too few homes are available to buy; and low-loan rates have enabled affluent buyers and investors to pay more.
Real estate investment trusts and other companies have traditionally owned apartment buildings, but the housing bust of the mid-2000s helped usher in a wave of Wall Street investment in previously owned single-family houses. Investment funds like Blackstone Group bought up thousands of foreclosed and distressed homes. Now, real estate investors’ are impacting the market for SFR homes buying up properties all cash in a matter of hours.
The Kurt Real Estate Group Inc. Call Them Today 877-957-6677
Distinctive Strategies that Deliver Record-Setting Results!
When you combine Kurt’s passion and knowledge of the real estate market, you really gain an appreciation for what makes Kurt different. But what truly sets him apart from the crowd are his 5 distinctive strategies…
For Kurt, getting into real estate was not an accident, it was a deliberate and calculated decision to deliver a better experience to home buyers and sellers than they have ever received before. Today, you could ask any one of hundreds of clients, read his Yelp reviews, or look at his track record of being awarded in Orange Coast and Forbes Magazine in excess of ten consecutive years and you too will say mission accomplished.
You can call him direct on his cell at 714-957-6677
Kurt Galitski | The Kurt Real Estate Group | Top 2% Coldwell Banker Agents Nationally | BRE# 01348644 | www.KurtRealEstate.com
Article courtesy of: OC Register
Photo courtesy of: https://lightersideofrealestate.com/articles/top-strategies-sure-spark-bidding-war
Join our network
Keep up to date with the latest market trends and opportunities in Orange County.