Investor purchases made up 9.5% of home sales in April, just shy of the February peak (9.7%) and up 64% over 2019, according to a new realtor.com® report that shows investors scooped up a record-high share of for-sale homes this spring. Nearly three-quarters of investors paid in cash (72.2%), according to the report.
Here are some additional key findings:
- Investors took more inventory off the market than they added to it in April, and bought homes at 10% lower median prices than they sold them. However, investors did sell more homes than during the prior year (+24%).
- On average, April’s 10 fastest-growing investor buying markets year-over-year offered more affordable listing prices ($372,000) than the U.S. median ($425,000), led by Charlotte, North Carolina, Jacksonville, Florida and Birmingham, Alabama (see table below).
What do these trends mean going forward?
“While soaring mortgage rates have forced many Americans to put homebuying plans on pause this spring, 2022’s financial shifts have yet to take the steam out of investor activity,” said realtor.com® Chief Economist Danielle Hale. “In the shorter term, everyday home shoppers should be prepared to face tough competition from a group that has deep pockets, often filled with cash. But sellers may benefit from investors making strong offers, at a time when overall demand is cooling.”
Top 10 investor homebuying markets, by share of purchases year-over-year*
| Rank | Metro Area | Y-Y Change (pct. pts.) | April 2022 Share |
| 1 | Charlotte, N.C. | 10.7% | 20.0% |
| 2 | Jacksonville, Fla. | 10.2% | 17.8% |
| 3 | Birmingham, Ala. | 8.8% | 18.9% |
| 4 | Lakeland, Fla. | 8.6% | 17.8% |
| 5 | Winston, N.C. | 8.3% | 14.5% |
| 6 | Tucson, Ariz. | 8.2% | 14.3% |
| 7 | Greensboro, N.C. | 8.1% | 16.5% |
| 8 | Colorado Springs, Colo. | 7.9% | 11.6% |
| 9 | Memphis, Tenn. | 7.7% | 18.5% |
| 10 | Danville, Va. | 7.5% | 16.3% |
*Out of 263 metro areas with 100+ investor home purchases made under a corporation or company name made during the 12-months ended April 2022.
To read the full report, click here.
