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By Bloomberg<\/div><\/div>\n

As rents soar, investors buy more homes \u2013 but a Moody\u2019s Analytics economist says that\u2019s a potential precursor to price declines if they decide it\u2019s time to sell.<\/span><\/span><\/p>\n<\/div>\n

NEW YORK \u2013 Single-family landlords eager to profit from soaring rents in the U.S. have stepped up their purchases of houses.<\/span><\/span><\/p>\n

Deals by investors \u2013 including a smaller portion of flippers \u2013 helped push up prices more than 20% on average, squeezing out normal buyers, according to an analysis by Mark Zandi, chief economist for Moody\u2019s Analytics.<\/span><\/span><\/p>\n

Investors accounted for 26% of single-family purchases in the third quarter, up from 15% a year earlier, the study shows.<\/span><\/span><\/p>\n

Hurting affordability<\/span><\/span><\/h3>\n
The cities with the biggest surges in investor buying \u2013 Atlanta; Jacksonville<\/strong>, Florida; Phoenix; Charlotte, North Carolina; and Las Vegas \u2013 have also had some of the biggest price gains, said Zandi, whose analysis included data from CoreLogic.<\/span><\/span><\/p>\n
Investors from mom-and-pop landlords to Wall Street firms are rushing to buy houses that can command premium rents. They\u2019re chasing the same affordable properties that first-time buyers dependent on mortgages are also competing for. And in a market starved of inventory, cash wins.<\/span><\/span><\/p>\n
\u201cPurchases by typical buyers have not risen appreciably,\u201d Zandi said. \u201cBut it has risen a lot for investors. The biggest increase is for large investors.\u201d<\/span><\/span><\/p>\n
Deals by institutional investors tripled from a year earlier to 97,684 in the third quarter, according to Zandi. Traditional buyer purchases fell slightly to 1.14 million. A third of the investor purchases involved flippers, down from a half a year earlier.<\/span><\/span><\/p>\n
If investors lose interest, the housing market in areas where they were most active would be vulnerable to price declines, Zandi said. Already, mortgage rates are beginning to rise, making homes more unaffordable for typical buyers.<\/span><\/span><\/p>\n
\u201cThis is not a healthy market,\u201d he said. \u201cIt feels like it is getting very stretched. Investors will buy until it no longer pencils out. Then what happens with prices?\u201d<\/span><\/span><\/p>\n
\u00a9 2022 Bloomberg L.P., \u00a9 2022 Penton Media<\/span><\/span><\/p>\n<\/div><\/div>\n
Go to Source<\/a>
\nAuthor: kerrys<\/p>\n","protected":false},"excerpt":{"rendered":"
By Bloomberg As rents soar, investors buy more homes \u2013 but a Moody\u2019s Analytics economist says that\u2019s a potential precursor to price declines if they decide it\u2019s time to sell. NEW YORK \u2013 Single-family landlords eager to profit from soaring rents in the U.S. have stepped up their purchases of houses. Deals by investors \u2013 including a smaller portion of flippers \u2013 helped push up prices more than 20% on average, squeezing out normal buyers, according to an analysis by Mark Zandi, chief economist for Moody\u2019s Analytics. Investors accounted for 26% of single-family purchases in the third quarter, up from 15% a year earlier, the study shows. Hurting affordability The cities with the biggest surges in investor buying \u2013 Atlanta; Jacksonville, Florida; Phoenix; Charlotte, North Carolina; and Las Vegas \u2013 have also had some of the biggest price gains, said Zandi, whose analysis included data from CoreLogic. Investors from mom-and-pop landlords to Wall Street firms are rushing to buy houses that can command premium rents. They\u2019re chasing the same affordable properties that first-time buyers dependent on mortgages are also competing for. And in a market starved of inventory, cash wins. \u201cPurchases by typical buyers have not risen appreciably,\u201d Zandi said. \u201cBut it has risen a lot for investors. The biggest increase is for large investors.\u201d Deals by institutional investors tripled from a year earlier to 97,684 in the third quarter, according to Zandi. Traditional buyer purchases fell slightly to 1.14 million. A third of the investor purchases involved flippers, down from a half a year earlier. If investors lose interest, the housing market in areas where they were most active would be vulnerable to price declines, Zandi said. Already, mortgage rates are beginning to rise, making homes more unaffordable for typical buyers. \u201cThis is not a healthy market,\u201d he said. \u201cIt feels like it is getting very stretched. Investors will buy until it no longer pencils out. Then what happens with prices?\u201d \u00a9 2022 Bloomberg L.P., \u00a9 2022 Penton Media Go to Source Author: kerrys<\/p>\n","protected":false},"author":4,"featured_media":6062,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/6061"}],"collection":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/comments?post=6061"}],"version-history":[{"count":0,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/6061\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media\/6062"}],"wp:attachment":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media?parent=6061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/categories?post=6061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/tags?post=6061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}