Housing Costs Are Skyrocketing: How to Navigate This New Real Estate Landscape
Investors buying up a record share of for-sale homes is one factor making the single-family home market so difficult for regular homebuyers. All cash offers and rising mortgage rates put the average home buyer at a disadvantage. Real estate investors bought a record 18.4% of the homes that were sold in the U.S. during the fourth quarter of 2021, according to a report from real estate brokerage Redfin. That's up from 12.6% a year earlier and a revised rate of 17.4% in the third quarter. https://www.globest.com/2022/02/17/investors-are-buying-a-record-share-of-us-homes/?slreturn=20220311140421 Investors had the biggest market share in the relatively affordable Sun Belt metros. In Atlanta, 32.7% of homes that sold in the fourth quarter were bought by investors, the biggest share of the 40 U.S. metros in Redfin’s analysis, and in Charlotte it was 32.1%, followed by Jacksonville, Fla. (29.8%), Las Vegas (29.2%) and Phoenix (28.4%). “The rise of commercial investors into the single-family home market is one reason individual homebuyers are seeing such a spike in prices,” explains Jake Clopton, founder of Clopton Capital. “Because rents are skyrocketing, it is providing an incentive for investors who plan to rent out the homes they buy.” Jake Clopton
As housing costs are skyrocketing and uncertainty swirls around the real estate market, potential homeowners are facing some challenges. Joi
