20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
Investors are increasingly targeting low-priced homes, sparking debates over the implications for housing affordability.
As the demand for residential properties surges, particularly among investors seeking lucrative opportunities, concerns mount regarding the accessibility of affordable housing for ordinary buyers and renters.
The surge in investor activity comes against a backdrop of a housing market characterized by soaring prices and limited inventory, which is exacerbating the challenges faced by prospective homeowners, particularly those with modest incomes.
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Investors bought 26.1% of the nation's lower-priced homes in the fourth quarter — the highest share on record and up from 24% a year earlier, according to a report from real estate brokerage Redfin.
Investors bought 13.6% of mid-priced homes that sold versus 14.3% a year earlier and 15.9% of high-priced homes compared to 15.4% a year earlier.
"I get tons of emails every day from investors looking for properties, but of course, they only want homes that are under market value, which are hard to come by. When they find those properties, they pile in," said Carrie Caruthers, a Redfin Premier real estate agent in Riverside County, California. "I've recently seen an uptick in foreclosures, which investors are interested in because they often sell at a discount. I just sold one foreclosed house to an investor for $400,000. It probably would've sold for $500,000 if it hadn't been a foreclosure, but the investor got a deal because foreclosure purchases come with risks."
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Although the portion of homes sold to investors increased in the fourth quarter, the number of homes sold to investors dropped 10.5% year over year in the fourth quarter to 46,419 — the lowest fourth-quarter level since 2016. Investor purchases have dropped partially because of high interest rates, escalating home prices and a slow rental market have made investing in housing less profitable.
The average price of homes acquired by investors rose to $453,271 from $426,573 the previous year. Despite a slight dip from $33.6 billion to $32.3 billion in total value, investors continued to invest substantially in U.S. residential properties.
"It's too early to say that investor purchases have hit a bottom, but they're unlikely to shoot up like they did during the pandemic anytime soon," Redfin Senior Economist Sheharyar Bokhari said. "That's because borrowing costs and home prices remain high, the number of homes available to buy remains low and rents remain lackluster. If the Fed cuts interest rates later this year as expected, we may see more investors wade into the housing market."
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20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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