Feb 02

Buyers Also Face Competition From Investors

Real estate investors are buying up homes, and first-time buyers increasingly are finding themselves up against them in bidding wars.

Investors are drawn to real estate to flip single-family homes, townhomes, and condos for a profit and to build their portfolio of properties to convert them to rental units.

The share of investors is at the highest level since 2015, according to realtor.com®’s data. They’re most notably targeting the Midwest and Sun Belt, where rental prices are climbing but home prices still remain relatively affordable compared with some other regions of the U.S., realtor.com® says.

“Investors are particularly attracted to affordably priced homes, the very homes that would normally be appealing to first-time buyers,” says George Ratiu, realtor.com®’s manager of economic research. “Investors who generally come with cash have a significant advantage over first-timers who typically rely on a mortgage. In a market with few homes for sale already, this prices out many buyers.”

Realtor.com®’s research team identified where investors are purchasing the highest share of homes by evaluating thousands of deed records in the nation’s 50 largest metro areas. They looked at single-family homes, condos, and townhomes that were purchased by investor entities. Individual investors—mom and pops purchasing a unit to rent—were not included in the analysis. For geographic diversity, the team also limited its list to one metro per state.

The following areas are where investors are purchasing the highest share of homes, according to realtor.com®.

Memphis, Tenn.

  • Share of investor buyers in July: 17%
  • Median list price in September: $249,000
  • Median rent in September: $1,217

Birmingham, Ala.

  • Share of investor buyers: 16%
  • Median list price: $271,000
  • Median rent: $1,115

St. Louis

  • Share of investor buyers: 14%
  • Median list price: $250,000
  • Median rent: $1,150

Charlotte, N.C.

  • Share of investor buyers: 13%
  • Median list price: $390,000
  • Median rent: $1,543

Jacksonville, Fla.

  • Share of investor buyers: 13%
  • Median list price: $370,000
  • Median rent: $1,446

Image by Shahid Abdullah from Pixabay

©National Association of REALTORS®
Reprinted with permission

admin

For all of your Real Estate needs, place yourself in the competent hands of a career Realtor who is a Philadelphia native and Delaware County resident. Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both.

Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary.

Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that “perfect” property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently.

When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting – or exceeding – his clients’ expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame.

For Superior Real Estate Representation in the Delaware Valley, Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania… call Anthony DiDonato.