As investor purchases in the housing market plummet at an unprecedented rate, dropping 29.7% year over year to 48,667 in Q3 2023—the lowest third-quarter level since 2016—the broader US real estate landscape faces a significant slowdown.
Investors are scaling back on their purchases in the housing market at a record pace.
Investor purchases dropped 29.7% year over year in Q3 2023 to 48,667.
This is the lowest level of any third quarter since 2016.
By comparison, overall US home purchases fell 22.2% to… pic.twitter.com/e2FRax7sLi
— The Kobeissi Letter (@KobeissiLetter) November 21, 2023
Given the market backdrop, this is not a surprise.
With record prices and 20+ year high rates, cap rates are horrible.
If rents begin to decline, we could see a large rush of investor properties hit the market.
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) November 21, 2023