Data from realty company Redfin reveals that roughly 13.5% of homes sold
in Mar. 2023 went for less than the investor bought the property for,
and that figure was even higher for flippers, for whom that figure was
20.8%.
A housing shortage, volatile rates, and price drops mean that the real estate industry may not be as lucrative as it once was.
- According to Redfin, investors lost money on 14.5% of homes they sold in Feb. 2023, representing the highest share since 2016.
- The
report also found that investors are losing money amid rising mortgage
rates, which has caused a significant drop in homebuyer demand.
Currently, the average 30-year fixed mortgage rate is 6.39%, treading
near the 20-year high of 7.08% last fall.
- The median sales
price of homes decreased by 4.8% YoY from $486,980 to $463,505. The U.S.
cities experiencing the biggest declines YoY are San Francisco,
Sacramento, San Jose, and Oakland, all located in California.
