(ZEROHEDGE) – Residential real estate brokerage firm Redfin released new data that revealed a record-breaking drop in homes purchased by investors in the first quarter. This sharp decline is due to a combination of elevated interest rates and sliding home prices, which impacts potential future returns. With investors retreating to the sidelines, buyers in the market have dramatically shrunk, and price wars have eased.
Redfin data shows investors purchased 48.6% fewer homes in the first quarter compared with the same period last year. This was the most significant plunge on record.
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The brokerage said the investors still in the market have shifted to buying or flipping more affordable properties due to tightening credit conditions. Getting financing for lower-priced homes is easier, and there's more demand. Low-priced home purchases surged to a two-year high, and a record 41.1% of investor purchases in the quarter were starter homes.
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