US Investor Home Purchases Continue to Slow in Q3

US investor home purchases ticked up 1% year-over-year in Q3 to roughly 52,000 transactions, according to Redfin. Real estate investors bought 17% of US homes sold in Q3, up slightly from 16% a year earlier. Redfin noted that the largely unchanged market share reflects how investor activity is mirroring the broader homebuying slowdown.

The firm said investor activity has flattened for the same reasons the housing market overall remains sluggish: market conditions are the opposite of those that fueled the pandemic-era investment surge, and many buyers are priced out. Investors also face narrower profit margins.

Redfin’s Senior Economist Dr. Sheharyar Bokhari said:

“Investor activity is stuck in neutral because profits are harder to come by, more homes are selling at a loss, and the rental market has softened. Investors aren’t completely retreating, but they’re not driving the housing market forward.”