It appears the surge in mortgage rates has finally impacted the investment market, as Redfin reports that investor home purchases have fallen considerable.
According to new data out by Redfin, investor home buys were down 11.5 percent in Q1 of this year when compared to the last quarter of 2021. When compared to Q3 of 2021, investor purchases were down 16.5 percent at the top of this year.
On a year-over-year basis, investor purchases were up 30.7 percent—the smallest annual gain in a year.
That’s not the say that investment properties aren’t still be snatched up around the U.S. Per Redfin, investors purchased a record 20 percent of homes that sold in Q1, up from 19.2 percent one quarter earlier and up 15.3 percent from one year earlier.
Atlanta, Jacksonville and Charlotte were the top spots for investment purchases, though all three cities saw quarter-over-quarter declines. No California cities made Redfin’s top 10 investment purchase list.
In dollar terms, investors bought $49.8 billion worth of homes in the first quarter of 2022, down 6.8 percent from $53.4 billion one quarter earlier. The typical home investors purchased cost $427,174, up from $425,298 one quarter earlier and $372,076 one year earlier.