While total home sales decline, investor purchases still remain above pre-pandemic levels.
Four cities in Florida made Redfin’s top-10 list for investors. Tampa ranked No. 8 on the list at 24.7% of homes purchased by investors in Q1 of 2022, down 16.5% quarter-to-quarter.
“Investor home purchases are falling for the same reason overall home purchases are falling: Surging interest rates and high housing prices have made it more expensive to get a mortgage and buy a home,” said Redfin Senior Economist Sheharyar Bokhari.
“The fact that investors are still able to grow their market share while buying fewer homes signals they’re not feeling the pain of higher interest rates as intensely as individual buyers, many of whom are getting priced out of the housing market altogether,” Bokhari says. “It also indicates that the individuals who can still afford to buy will continue to face competition from investors.”
As home sales fall to pre-pandemic levels, home prices continue to rise with the national median existing-home price reaching over $400,000 for the first time on record.
Total U.S. home equity increased 20% to $27.8 trillion in Q1 due to the red-hot housing market. This double-digit price growth has pushed some potential homebuyers out of the market.
Housing affordability has hit a 15-year low. NAR Chief Economist Lawrence Yun predicts home sales will decline further in the upcoming months as the sharp rise in mortgage rates causes affordability challenges.
The increasingly unaffordable home market is impacting homebuyer decisions and altering forecasts for price growth in the months to come, according to Zillow’s new forecast.
Thankfully, the number of listings in Hillsborough, Pasco and Pinellas counties has increased 43% in the past month and is up over 10% in the past week. You can stay updated on local market statistics by visiting tamparealtors.org/resources/market-stats and by watching GTR’s monthly video summaries from Consulting Economist Elliot Eisenberg, Ph.D. on our YouTube channel and Facebook page.