Are Investors Really Buying Up All the Homes in Riverside? Let’s Look at the Facts

Are Investors Actually Buying Up All the Homes?

f you’re trying to buy a home in Riverside County, you might feel like you’re competing against deep-pocketed Wall Street investors scooping up every available property. Many believe these mega-investors are driving up home prices, making it harder for local buyers to secure their dream home.

🚨 But here’s the truth: Investor activity is actually on the decline, and big institutional investors aren’t as active as you might think.

Most Investors Are Small-Scale, Not Corporate Giants

A common misconception is that large investment firms are dominating the housing market. However, most investors are small, independent buyers rather than major corporations. According to The Mortgage Reports:

“On average, small investors account for around 18% of the market, while mega investors represent only about 1%.”

This means the majority of real estate investors are individual landlords, mom-and-pop investors, and local buyers, not massive hedge funds purchasing entire neighborhoods.

Investor Purchases Are Dropping – Here’s What That Means for You

Even the big-name institutional investors that made headlines in recent years have significantly reduced their home purchases. Data from John Burns Research and Consulting (JBREC) shows that at their peak in Q2 2022, institutional investors (those owning 1,000+ single-family homes) only made up 2.4% of home sales.

➡️ Fast forward to Q3 2024, and that number has dropped to just 0.3%.

So why are investors pulling back?

✔️ Higher mortgage rates are making it harder for them to turn a profit.

✔️ Home prices have increased, reducing their potential returns.

✔️ Stricter regulations and rising property taxes have made investing less attractive.

What This Means for Buyers in Riverside

The idea that Wall Street is buying up all the homes and pricing out local buyers is simply a myth. With fewer investors in the market, buyers in Riverside, Moreno Valley, and surrounding areas may actually have more opportunities to purchase a home now than in recent years.

🏡 If you’ve been waiting for the right time to buy, this could be your moment. Let’s connect to explore the best opportunities in our local market.

📲 Thinking about buying or selling in Riverside County? Contact Othman Realty Group – Professional Realtors and Trusted Advisors Since 1985.

📍 DRE 00961200 / 00928035

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