The glory days of real estate investors buying and flipping homes for quick profits seem to have hit a roadblock. It appears that investors are now losing on approximately one out of every seven homes they sell.
In certain U.S. cities, sky-high house prices and elevated mortgage rates have diminished homebuyer demand, forcing investors to sell homes at a loss. A recent report by Redfin reveals that in March, investors lost money on roughly 13.5% of the homes they sold, while only 4.8% of overall U.S. homes sold at a loss.
See more on startup investing from Benzinga:
February Real Estate Numbers
This comes after a dire month in February, where real estate investors experienced losses on 14.5% of homes sold — the highest rate since 2016 and a far cry from the record monthly low of 2.8% in May 2022. The first quarter of 2023 saw real estate investors purchasing 48.6% fewer homes compared to the previous year as elevated interest rates, declining rents and housing values ate into…
2023-08-24 13:13:38
Link from finance.yahoo.com
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