Investors are increasingly scooping up low-priced homes, according to a new report from Redfin. The report found that investors bought a record 26% of homes in the lowest price tier during the fourth quarter of 2022. This is up from 19% in the previous quarter and 16% a year earlier.
Investors are attracted to low-priced homes for a number of reasons. First, they are often more affordable than higher-priced homes, which makes them a good option for investors who are looking to maximize their returns. Second, low-priced homes often have the potential for greater value appreciation, as they are more likely to benefit from improvements in the surrounding neighborhood.
However, investors are finding it increasingly difficult to find good deals on low-priced homes. The supply of these homes is limited, and competition from other investors is fierce. As a result, investors are paying more for low-priced homes than they did in the past.
Overall, the trend of investors buying low-priced homes is likely to continue in the coming years. This is due to a number of factors, including the affordability of low-priced homes, the potential for value appreciation, and the limited supply of these homes. However, investors should be aware that it is becoming increasingly difficult to find good deals on low-priced homes.
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