Is Wall Street Really Buying All the Homes?
Let’s be real – buying a home right now is tough. You’re scrolling through listings, rushing to open houses, and maybe even losing out to more competitive offers. Somewhere along the way, you might’ve heard the reason it’s so hard to find a home is because big Wall Street investors are swooping in and snatching up everything in sight.But here’s the thing: that’s mostly a myth. While investors are part of the market, according to Redfin, they’re a relatively small part:Here’s what that means. Five out of every six homes are being purchased by everyday homebuyers like you – not big investors.So, before you get discouraged, let’s take a look at what’s really going on. You might be surprised to learn that Wall Street isn’t the competition you may think it is.Most Investors Are Small Mom-and-PopsMost investors aren’t the mega corporations you’ve probably heard about. In fact, many are your neighbors. A recent report from CoreLogic shows most investors are small, mom-and-pop types who own fewer than 10 properties. They aren’t massive companies with endless resources. Picture your neighbor who has another home they’re renting out or a vacation getaway.Only about 1% of the market is owned by large, mega investors with thousands of properties. The majority are still owned by individuals and smaller investors – not the Wall Street giants.Investor Purchases Are DecliningNot only are most investors small, but overall investor purchases have been on the decline. As the same report from CoreLogic says: “Investors made 80,000 purchases in June 2024, compared with 112,000 in June 2023, and a nearly 50% percent drop from the high of 149,000 purchases in June 2021 . . .”And what does this mean going forward? CoreLogic goes on to point out this downward trend is expected to continue into 2025.So, if it seems like competition with investors is pushing you out of the market, it might help to know that investor activity is actually slowing down.Bottom LineThe idea that Wall Street is buying up all the homes is largely a myth. Most investors are small ones, and the share of homes purchased by investors is declining – so you can take this one off your worry list.If you have questions about the housing market, talk to a local real estate agent. They can explain what’s really happening.
Don’t Let These Two Concerns Hold You Back from Selling Your House
If you’re debating whether or not you want to sell right now, it might be because you’ve got some unanswered questions, like if moving really makes sense in today’s market. Maybe you’re wondering if it’s even a good idea to move right now. Or you’re stressed because you think you won't find a house you like.To put your mind at ease, here’s how to tackle these two concerns head-on.Is It Even a Good Idea To Move Right Now?If you own a home already, you may have been holding off because you don’t want to sell and take on a higher mortgage rate on your next house. But your move may be a lot more feasible than you think, and that’s because of your equity.Equity is the current market value of your home minus what you still owe on your loan. And thanks to the rapid appreciation we saw over the past few years, your equity has gotten a big boost. Just how much are we talking about? See for yourself. As Dr. Selma Hepp, Chief Economist at CoreLogic, explains:“Persistent home price growth has continued to fuel home equity gains for existing homeowners who now average about $315,000 in equity and almost $129,000 more than at the onset of the pandemic.”Here’s why this can be such a game-changer when you sell. You can use that equity to put down a larger amount on your next home, which means financing less at today’s mortgage rate. And in some cases, you may even be able to buy your next home in cash, avoiding mortgage rates altogether.The bottom line? Your equity could be the key to making your next move possible.Will I Be Able To Find a Home I Like?If this is on your mind, it’s probably because you remember just how low the supply of homes for sale got over the past few years. It felt nearly impossible to find a home to buy because there were so few available.But finding a home in today’s market isn’t as challenging. That’s because the number of homes for sale is growing, giving you more options to choose from. Data from Realtor.com shows just how much inventory has increased – it's up almost 30% year-over-year (see graph below):And even though inventory is still below pre-pandemic levels, this is the highest it’s been in quite a while. That means you have more options for your move, but your house should still stand out to buyers at the same time. That’s a sweet spot for you.It’s important to note, though, that this balance varies by local market. Some places may have more homes for sale than others, so working with a local real estate agent is the best way to see what inventory trends look like in your area. Bottom LineIf you’re thinking about selling, hopefully these concerns haven’t kept you up at night. With this information, you should realize you don’t have to let the what-if’s delay your move anymore.Connect with a local agent so you have the data and the local perspective you need to move forward.
Downsizing for Seniors: A Guide to a Simplified Lifestyle
As we get older, our needs and priorities evolve, prompting many seniors to think about downsizing. Whether for financial reasons, health needs, or simply the desire for a more manageable living space, moving to a smaller home can offer a fresh start and many advantages. Here, I'll explore different downsizing options for seniors, from moving to a smaller home to transitioning to an assisted living community or even relocating to a new state. Selling Your Home: Preparing for a New Chapter For many seniors, downsizing starts with selling their current home. This can be an emotional journey, as it often means saying goodbye to a place filled with memories. However, it also presents a unique chance to declutter and embrace a simpler way of life. It's essential to approach this process with a clear plan. Keep in mind that your children might not want many of the items you've collected over the years, so prepare to donate or discard things that no longer serve you. To start, consider working with a real estate agent who specializes in helping seniors transition to new homes. They can guide you through assessing your home's condition and recommend any necessary updates—like a fresh coat of paint or basic landscaping—to make your property more attractive to potential buyers. Staging your home to highlight its best features can be a crucial step in connecting with a wider audience. Look for an agent with a Seniors Real Estate Specialist (SRES) designation, as they are trained to meet the unique needs of seniors and can connect you with resources nationwide. Choosing a New Home: Prioritizing Comfort and Accessibility Once you've sold your home, it's time to find a new space that suits your current lifestyle. If a smaller home is what you're after, consider properties that are easy to maintain and feature accessible design elements like single-story layouts, minimal stairs, and accessible bathrooms. Condominiums and townhouses often make great options, offering amenities like community pools, lawn care, and more—freeing you from time-consuming maintenance. If you're leaning towards an assisted living community, take your time visiting multiple facilities and talking to residents. Look for communities that align with your interests and provide services you might value, such as meal plans, transportation, housekeeping, and social activities. Many seniors find that assisted living communities make it easier to stay active, meet new friends, and enjoy a supportive environment. Lifestyle Changes: Embracing a New Chapter Downsizing isn't just about reducing space; it's about starting a new lifestyle. Moving to a smaller home, an assisted living community, or a different state opens up opportunities for new friendships, hobbies, and social engagement. Many seniors discover that the move leads to more time for personal interests and less time spent on upkeep. Embracing change can feel like a fresh start, allowing you to focus on what truly matters. Exploring New Locations: Relocating for a Fresh Start For some seniors, downsizing may mean moving to a different state entirely. This decision could be influenced by a preference for a different climate, a desire to be closer to family, or the need for better healthcare access. When thinking about relocation, research the cost of living, senior services, and healthcare facilities in potential areas. It's wise to visit any prospective cities or states before making a final decision. Spend some time exploring neighborhoods, chatting with locals, and soaking in the community's atmosphere. Consider renting a short-term furnished property to get a true feel for the area before making a commitment. Your new home should align with your desired lifestyle and provide the support you need as you enter this next stage of life. Conclusion: Focus on Quality of Life Downsizing isn't just about moving into a smaller space; it's about creating a home that fits your current needs and enhances your quality of life. Take your time, weigh your options, and make decisions that prioritize your well-being and happiness. Whether you choose to move closer to family, join a vibrant senior community, or settle in a new state, downsizing can be a fulfilling step towards a simpler and more joyful life
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