2024 is the year that home buyers regained their leverage!
Remember the crazy housing market during the pandemic when investors with bulging wallets swooped in, buying houses with piles of cash?
Now, things are starting to cool down. Realtor.com recently did a study of all homes that were purchased by investors in the first two quarters of 2024, Turns out the number of investors who bought properties in cash dropped to 64%. That’s a big change from late 2021 when 79.7% of investors paid in cash to win bidding wars, and it’s the lowest share of cash buyers since 2008.
This is great news for regular homebuyers. With fewer all-cash offers pushing up prices, the market might be fairer for ordinary people. This could mean more opportunities for buyers who need mortgages.
“This is going to create less artificial demand among buyers, therefore reducing some upward pressure on prices,” said Scott Saxton of Just For Buyers Realty. “Not only does it give more leverage to buyers who intend on living in the properties, but it also leaves room for mom-and-pop investors to get into the housing market. ”
Even though cash buyers have retreated for now, they will come back. Regular buyers should not delay getting into the housing market because one day the investors will be back. 2024 is the year that home buyers regained their leverage… and now is the time they need to put it in play.