Larger Investors Step Back, Smaller Groups Thrive
In the ever-changing real estate scene, a significant shift is underway as larger investors reduce activity, while smaller groups maintain momentum. Investors, pivotal in the 2021-2022 housing boom, now show nuanced patterns. CoreLogic data reveals a drop in purchases by mega and large investors, hinting at strategic adjustments.
Redfin Corp. reports a 29.7% YoY decline in investor home purchases in Q3 2023, surpassing the broader market dip. CoreLogic economist Thom Malone attributes this to the pullback of iBuyers, impacting larger investors more. Meanwhile, smaller investors, owning as few as three properties, sustain their market share.
Looking to 2024, investors, particularly in Sun Belt markets, remain active. However, substantial shifts in their market share are unlikely. Affordability challenges drive people to rentals, incentivizing investors. The interplay between investor sizes signifies market adaptation, with larger players stepping back as smaller groups navigate evolving dynamics. The influence of interest rates on the 2024 real estate landscape awaits