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Fix-and-flip investors say they’re discouraged by higher mortgage rates, home prices

Housing Wire

As low inventory levels, elevated mortgage rates and rising home prices keep the housing industry stagnant, short-term real estate investors — aka fix-and-flippers — faced market turmoil during the third quarter of 2024. On a national scale, 46% of investors reported facing more competition for deals than expected.

Investors 434
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Investors Embracing Expansion of Real Estate Portfolios 

Appraisal Buzz

According to study data published by RentRedi , most American real estate investors intend to increase their portfolios and make large investments in renovating their existing properties in 2025, exhibiting a strong growth mindset. Some 27% of landlords nationwide intend to make renovations totaling at least $20k per property.

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Real estate investors say they’ll expand portfolios, make home improvements in 2025

Housing Wire

real estate investors are planning to grow their portfolios and invest significantly in property improvements in 2025, according to a new survey from property management software provider RentRedi. Landlords in the Northeast are the most committed to renovations, with 60% planning to spend $5,000-plus per property. A majority of U.S.

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Home Auction Buyer Optimism Hits Three-Year High 

Appraisal Buzz

Among buyer types, institutional investors were the most likely to expect increasing property purchases in 2025 (85%) compared to 71% for owner-occupant buyers, and 62% for local community developers. The share of buyers surveyed who described themselves as institutional investors was just 4%, up slightly from 3% in 2024.

Buyers 389
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Gross Profits on Home Flips on the Rise 

Appraisal Buzz

The report further reveals that as the number of homes flipped by investors declined, so did flips as a portion of all home sales, from 8.1% Gross profits on typical home flips in 2024 increased to $72,000 nationwide (the difference between the median sales price and the median amount originally paid by investors). in 2023 to 7.6%

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The renovation ripple effect in underserved neighborhoods

Housing Wire

According to public record tax assessor data, all four are now also owner-occupied “I’m trying to establish our community again,” Morgan said, noting the extensive renovations he does before reselling the homes to retail buyers. I’m trying to make homes in certain areas livable again. I can’t just be a part of that problem.

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Fix-and-flip activity was down in 2024, but profit margins grew slightly

Housing Wire

fell in 2024, continuing a downward trend as real estate investors grapple with tight profit margins. Home Flipping Report, investors flipped 297,885 single-family homes and condominiums last year. The home-flipping industry saw investors shy away even more in 2024 amid the extended period of languishing profits. a year earlier.

Investors 346