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Not only do you have young families and investors looking at starter homes, you also have buyers who have been forced to consider less-expensive options due to near-record home prices. The price growth for the intermediate and upper price brackets was 4.6% In July, the average U.S. from the previous year. Driven by an 18.8%
In a tight housing market with a shortage of inventory and soaring rates, many homebuyers are opting for ARMs, which carry lower rates for an initial period of fixed interest and amortize over a 30-year term. . It’s not a bad thing for borrowers, lenders, and loan investors.
For certain parts of the economy, usually in the upper-income brackets, they didn’t carry a lot of debt and they couldn’t go out to spend their money. gentrification has started taking place) will appreciate greatly because: There is a plethora of investors with cash, looking to diversify out of the stock market and worried about inflation.
Home sales in the “upper brackets” of the market reportedly perform better than average-priced homes. This growth can be a good sign for migrating investors. Still, Sotheby’s expects international investors to return to the market in 2025 as U.S. inventory levels stabilize.
Some stats: As recently as 2023, it is estimated that investors accounted for 27% of all single-family home purchases, up from the high teens in 2019. Contrary to popular opinion, most rental properties are not owned by hedge funds, but rather small and medium-sized landlords or “mom-and-pop” investors. That is a lot of front doors.
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