The high cost of borrowing continues to affect the single-family home purchase market with investors clearly fleeing the space, according to Redfin.
U.S. home sales fell a record 45.8% year over year in the fourth quarter and investor purchases slumped 27% on a quarter-over-quarter basis, the largest quarterly decline on record aside from the beginning of the pandemic. That's comparable with the 28.1% quarterly drop in overall home purchases.
Investors purchased 17.8% of all homes that were bought in the metros tracked by Redfin in the fourth quarter. That's comparable with 17.6% in the prior quarter and down from 19.4% a year earlier.
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