PENNSYLVANIA — Real estate investors sold more homes in 2024 than in any year on record, marking a significant shift in the housing market. According to a new report by Realtor.com, 10.8% of all home sellers were investors last year, up from 10.1% in 2023. Meanwhile, investor purchases rose slightly to 13.0%, reflecting a dynamic market where investor buying and selling activity continues to influence inventory and pricing trends.
“Investor trends signal a transition,” said Danielle Hale, Chief Economist at Realtor.com. “Nationwide, investors picked up more homes on net in 2024, as smaller investors were a growing majority of investor buyers. But with investor selling at a new high, the market saw the smallest net investor buying activity in five years, lessening one of the notable headwinds for entry-level buyers who often compete with investors.”
Small Investors Driving Market Activity
The report highlights a distinct rise in activity among small-scale investors, defined as those acquiring fewer than 10 homes. These smaller players made up 59.2% of the investor market last year, their highest share on record. Large institutional investors, purchasing 50 or more homes, accounted for just 21.7% of investor activity, the lowest level since 2007.
Small investors appear to be leveraging opportunities in a shifting market, with their purchases up 3.7% year-over-year. However, financing trends among all investors have changed, with debt becoming a more common tool. For example, the share of all-cash purchases by small investors dropped to 62.0%, down from 65.6% in 2023.
Regional Trends and Pennsylvania Implications
Investor activity varies significantly by region. States like Oklahoma, Missouri, and Georgia led in investor sales, while others, such as California and Oregon, saw an influx of investor listings relative to purchases. Pennsylvania’s market, particularly in areas like Chester, Delaware, and Montgomery Counties, reflects a blend of these national trends.
“In some states like Hawaii, Montana, and Washington, D.C., investors are still net buyers, competing with first-time buyers for entry-level housing inventory,” said Hannah Jones, Senior Economic Research Analyst at Realtor.com. “This contrasts with markets like California and Oregon, where investors are net sellers, creating opportunities for aspiring homeowners.”
For Pennsylvania buyers, the increased investor sales may mean less competition and a possible stabilization in home prices. First-time and move-up buyers in the region could benefit from reduced demand, as smaller investors and non-cash parties enter the fray. Sellers, meanwhile, should keep an eye on shifting financing costs and adjust their expectations accordingly.
The Road Ahead
The investor-driven reshaping of the housing market presents both opportunities and challenges. For buyers, reduced investor activity could open up more inventory while alleviating some competitive pressures. For sellers, particularly investment-driven ones, it highlights the importance of timing and market trends in securing favorable deals.
As Pennsylvania’s housing dynamics continue to evolve, both buyers and sellers stand to gain from these developments in a market poised to balance accessibility and opportunity.
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