Investor activity in the housing market remained high in the first quarter of 2024, but the second quarter saw investor activity take its first step back in two years.
In January, the share of single-family purchases made by investors was 29.8%, but by June, this share had declined five percentage points to 23.4%. That's according to CoreLogic's latest investor report.
June’s investor percentage was the lowest in two years and was equivalent to May’s numbers. January’s number was at an all-time high based on CoreLogic’s data that goes back to 2010.
Investors made 80,000 purchases in June 2024, compared with 112,000 in June 2023, and a nearly 50% drop from the high of 149,000 purchases in June 2021, when interest rates were still low. Overall, the level of purchase activity seen through the first half of 2024 seems more comparable to pre-pandemic investment activity.
Also in June, investors made 29% of home purchases in the low-price tier, 22% of medium-priced home purchases, and 21% of high-priced purchases.
"This trend is concerning for first-time homebuyers, who often look in the same tier and are likely facing increased competition from investors," wrote CoreLogic Economist Thomas Malone. "However, decreased affordability may also be keeping first-time buyers in the rental market, and investors are stepping up to fill the gap."
Dallas and Houston claimed the top two spots for both investor and non-investor purchases. Atlanta, which is in the third spot, had higher levels of investor purchases despite having similar levels of non-investor purchases as Chicago.
Los Angeles and Riverside, Calif. have very low transaction volumes for their population size, but both are ranked toward the top of the list for investor purchases.
In all U.S. states, investor share has declined. The smallest declines were seen in the Northeast, as well as the states of Florida and California. In each area, investor share fell between 1% and 4%.
The strongest declines are in the Mountain West and the lower Midwest, with states such as Idaho and Kansas.
