Real Estate Investors withdraw from The US market
US home sales are experiencing the sharpest decline since 2000, driven by falling buying and selling activity by real estate investors.
New data from Redfin shows that during the first quarter of 2023, activity among investors dropped by 48.6% compared to the same period in 2022. The main reason for this significant decline is rising interest rates, which are affecting profitability as rents and home prices fall.
With this trend set to continue into the second quarter, it is increasingly difficult for investors to obtain loans, limiting opportunities for buying properties.
The uncertain economic situation may encourage some investors to consider other asset classes such as stocks or bonds.
Redfin warns that during the pandemic, investors actively entered the housing market to take advantage of low interest rates and high demand. However, 13.5% of homes sold in March 2023 were sold at a loss to investors, while the figure was higher at 20.8% for short-term real estate investors.
Real Estate Investors withdraw from The US market
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