How Many Homes Are Investors Actually Buying? Are big investors really buying up all the homes today? If you’re trying to find a house to buy, this may be something you’re wondering about. Maybe you’ve read about it or seen reels on social media saying investors buying all the homes is making it even harder to find what the average buyer is looking for. But spoiler alert – there’s a lot of misinformation out there. To clear things up, here's the scoop on what's really happening. A lot of the big investor activity is actually in the rearview mirror already. The Wall Street Journal (WSJ) explains: “Investors of all sizes spent billions of dollars buying homes during the pandemic. At the 2022 peak, they bought more than one in every four single-family homes sold, though more recently their activity has slowed as interest rates rose and supply became tighter.” The key here is investor activity has slowed significantly, and even during the peak of investor buying, 3 out of every 4 single-family homes purchased were by regular, everyday buyers – not investors. And of the investors who bought over the past few years, most weren’t the big investors you may be hearing about. The vast majority were small mom-and-pop investors – people like your neighbors who own only a couple of homes, maybe even just their main residence and a vacation home. But let’s focus on the giant, mega-investor firms since that's what is being talked about so frequently on social media right now. Mega investors are those who own 1,000+ properties. You may be surprised to see that, according to the Wall Street Journal, they don’t buy all that many homes (see graph below):   This graph tells us two things. First, institutional investors were never buying a large percentage of available homes. During the peak in 2022, they bought about 2% of available single-family homes. Second, that percentage has gotten even smaller recently (so small the number rounds down to 0%). In an effort to understand why that percentage is trending down, private lender RCN Capital asked investors about the challenges they’re facing. Here’s what Jeffrey Tesch, CEO of RCN Capital, found out: “Investors are already facing many challenges in today’s housing market – rising prices, limited inventory, and higher financing costs.” Understanding these challenges is important because they show big, mega investors aren’t taking over the housing market. So, don't fall for everything you hear. They aren't snatching up all the homes and making it impossible for regular people to buy.  Bottom Line Big investors aren’t buying all the homes out there. If you've got questions about what you're hearing about the housing market, let's chat. I can help you understand what's really going on.

One of the crucial factors that home buyers need to consider when buying a house is interest rates. Interest rates can significantly impact the amount of money that buyers can borrow from lenders and the overall cost of the mortgage. Therefore, it's essential to understand how interest rates affect home buying. For buyers, interest rates determine the monthly payments they need to make for their mortgage. When interest rates are high, the cost of borrowing increases, which means buyers will have to pay more each month. Conversely, when interest rates are low, the cost of borrowing decreases, and buyers can secure a lower monthly mortgage payment. Mortgage rates are also affected by the overall state of the economy. In times of economic uncertainty, such as during a recession or a financial crisis, interest rates tend to be lower. This is because the Federal Reserve reduces interest rates to stimulate the economy. Conversely, in times of economic growth, interest rates tend to be higher, as the Federal Reserve tries to control inflation. Real estate news also plays a vital role in interest rates and home buying. If there is an increase in demand for homes, interest rates tend to be higher. This is because lenders want to capitalize on the increased demand for homes and earn a profit. Conversely, if there is a decrease in demand for homes, interest rates tend to be lower, as lenders want to attract more buyers to the market. In conclusion, interest rates play a significant role in home buying. Buyers need to understand how interest rates affect their mortgage payments and overall cost of borrowing. By keeping an eye on the state of the economy and real estate news, buyers can make informed decisions about when to buy a home and secure the best possible interest rate and the best type of loan product for them.

When it comes to buying a home, one of the most important steps is getting pre-approved by a lender. This process involves the lender reviewing your financial information and determining how much money they are willing to lend you for a mortgage. While some buyers may be tempted to skip this step or wait until later in the home-buying process, there are several reasons why getting pre-approved is crucial.First, a lender pre-approval gives you a clear idea of how much you can afford to spend on a home. This can help you narrow down your search and ensure that you are only looking at properties that are within your budget. It can also give you an advantage in a competitive market, as you will be able to make a more compelling offer if you can show that you are pre-approved for a certain amount.Additionally, a lender pre-approval can help you avoid disappointment down the road. Imagine falling in love with a home and making an offer, only to find out that you cannot secure financing for the amount you need. This can be a heartbreaking experience, and one that can be easily avoided with a pre-approval.Finally, a lender pre-approval can help streamline the home-buying process. Once you have found a home you love and made an offer, the lender will already have much of the information they need to finalize your mortgage. This can help speed up the process and get you into your new home more quickly.When it comes to getting pre-approved, it is important to work with a reputable lender who can guide you through the process and help you understand your options. You will need to provide documentation such as pay stubs, tax returns, and bank statements, so it is a good idea to gather this information ahead of time.In summary, a lender pre-approval is a crucial step in the home-buying process. It can help you understand your budget, avoid disappointment, and streamline the process. If you are in the market for a new home, be sure to start by getting pre-approved.