Investor purchases of single-family homes fell 32.3% year over year in the third quarter, declining more than any other property type. Investor purchases of condos/co-ops decreased 27.5%, while purchases of townhouses and multi-family properties both slumped about 18%.
Demand for single-family homes soared during the pandemic as scores of people left condos and apartments in cities for more room in the suburbs, but that demand has eased as the pandemic has subsided and many people have returned to the office and city life.
Still, single-family homes remained the most popular property type among investors in the third quarter, representing nearly three-quarters (72.8%) of investor purchases. Condos/co-ops came in second, at 16.4%, followed by townhouses (6.2%) and multi-family properties (4.6%).
Source: Conty Records and Redfin
Mortgage Rates Tick Down
Mortgage rates continued to tick down heading into the Thanksgiving holiday. In recent weeks, rates have hit above seven percent only to drop by almost half a percentage point. This volatility is making it difficult for potential homebuyers to know when to get into the market, and that is reflected in the latest data which shows existing home sales slowing across all price points.
