CoreLogic reported that investor purchases of homes in Q4 "held steady" after falling by 21% in June and then rebounding to 26% in September, but the real estate analyst firm expects iBuyer activity to continue to decline this year because iBuyers are struggling to resell the homes they purchased.
Only 30% of such homes bought in June were resold by the end of the year, CoreLogic reported, "a clear sign that 2022's mortgage rate hikes caused decreased demand from traditional buyers," it said.
The business plan for most iBuyers is to flip homes, being reliant on home price appreciation, but that expectation has waned.
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