High home prices and high mortgage rates have made a significant impact on real estate investor purchases. In fact, U.S. investor home purchases fell 30.2% year-over-year in the third quarter of 2022. With the exception of Q2 2020 when the nation faced lockdowns due to the COVID-19 pandemic, this is the largest decline since The Great Recession. Of course, total home purchases overall dropped 27.4% in Q3 2022. As a share of all homebuyers, the number of investors has now dropped for two quarters consecutively.
Florida cities lead the way… again…
Although overall we have seen a significant slowdown in investor activity across the country, we saw three Florida metro cities among the top 5 in the country with the highest percentages of investor buyers. The top 5 metro markets for investors in Q3 2022 were:
- #1. Jacksonville, FL: 29.6% of homes purchased
- #2. Miami, FL: 28.9% of homes purchased
- #3. Atlanta, GA: 27.6% of homes purchased
- #4. Las Vegas, NV: 26.9% of homes purchased
- #5. Orlando, FL: 26% of homes purchased
Although the trends have not been positive for the housing market overall, the decrease in investors could be a silver lining for homebuyers. In particular, first-time homebuyers have may now have a better chance of getting a property under contract. Over the past several years, it has been considerably difficult for homebuyers to compete with investors that oftentimes are cash buyers. With more of these investors exiting the market right now, this should give other homebuyers a better chance due to the less competitive market.
Are you looking to buy a home in the South Florida area? We can help! Contact one of our knowledgeable Live South Florida Realty, Inc. team members today to begin your search. Be sure to also download the free Florida Home Search app for your mobile device.