Investors picked up 15.4% of US home purchases during Q2 2021.

Did Wall Street Buy Up Main Street USA in Q2 2021?

According to the RealtyTrac Investor Purchase Report, (RealtyTrac is a subsidiary of ATTOM Data Solutions), investors made 15.4% of home purchases during Q2 2021, an increase of +3.9% y/y.

Though slightly down from the 15.9% share of home purchases Q1 2021, investor purchases in residential properties increased in 44 of the 50 states.

Despite investors purchases being up +3.9% y/y during Q2 2021, Rick Sharga, executive vice president with RealtyTrac said, “The increases – while notable – do not reflect a significant change of course for investor purchase activity.  Historically, investors have always accounted for somewhere between 10% and 15% of residential home purchase, and our data shows this is still the case today, albeit at the high end of that range.  But the data doesn’t support the ‘Wall Street is buying up Main Street’ theme that’s been a popular theory for the past year or so.”

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Investor Purchase Activity

The winners and losers in investor purchases during Q2 2021 included:

  • New Hampshire – 23.2%
  • Delaware – 22.99%
  • Georgia – 22.89%
  • Arizona – 20.83%
  • Mississippi – 20.09%
  • Florida – 19.6%
  • Vermont – 0.76%
  • Alaska -1.91%
  • New Mexico – 7.73%
  • Montana – 8.22%
  • Idaho – 8.37%
  • West Virginia – 8.72% 

Investors Paying Less than Consumers

According to RealtyTrac, investors paid an average of -29.4% less than consumers in Q2 2021.  The median purchase price for investors was $205,000; the median purchase price for consumers was $290,230.

Sharga commented on this price disparity by saying that overall, investors pay in cash…investors typically benefit from greater price discounts for their all-cash purchases.

Sharga also pointed out, “Another misconception is that investors are overpaying for properties, making it difficult for consumers to compete and artificially driving up prices.  But successful investors tend to look for below-market pricing in order to make a profit on their purchases.”

Thanks to RealtyTrac.

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