Tag Archives: Sheharyar Bokhari

Redfin reports that in Q4 2023, the price of U.S. luxury homes rose at twice the pace of non-luxury homes, led by affluent buyers closing the deal in all-cash transactions.

Redfin reports that home investors purchased 15.9% of the U.S. homes sold in Q3, with the typical investment home priced at $475,115, up slightly from $449,895 in Q3 of 2022.

“Affluent Americans are the only ones who can avoid the sting of high mortgage rates; plus, they’re spending less on housing and keeping more money in the bank because they’re avoiding interest payments,” said Redfin Senior Economist Sheharyar Bokhari.

According to Redfin, the typical starter home sold for an eye-watering record of $243,000 in June 2023, up 2.1% year-over-year and up 45% from before the pandemic.

Redfin reports that home listings and home sales have bounced back in Florida towns hit by Hurricane Ian last fall, a storm that caused between $41 billion and $70 billion in damage to the area.

A new analysis from Redfin has found that investors are selling homes nationwide at a loss, as elevated mortgage rates have curtailed homebuyer demand.

“Even though the length of time Americans are staying in their homes has ticked down from the peak it reached in 2020, it’s likely to head back up again in the next few years,” said Redfin Senior Economist Sheharyar Bokhari.

The share of homes investors are purchasing is slowing, with some cities seeing activity decrease by more than 60%.

Redfin reports investor home purchases dropped 30% in Q3 2022, the largest decline reported since the Great Recession aside from Q2 2020, at the outset of the pandemic.

A study by Redfin found that real estate investors acquired approximately 87,500 homes nationwide in Q2, a total that was up 11% quarter-over-quarter.