Real estate investments

The lowest-priced properties purchased by investors typically left them in the red when sold, according to the latest home flipping report from Attom.

Investment purchases surged to their highest share in five years in the second quarter, even though total volume decreased from 12 months earlier.

A "large institutional investor" will provide funding to assist Rithm in acquiring as much as $1.5 billion worth of residential transition loans.

The return on investment for fix and flip properties dipped to 25% in the first quarter of 2025, down from 48.8% in the fall of 2020, according to a report from Attom.

While overall investor purchase activity is returning to pre-pandemic norms, interest in condo units dropped to a 10-year low, as insurance and fees surged.

The underlying prime mortgages have an average balance of $358,024, a weighted average (WA) original FICO score of 776, an original cumulative loan-to-value (LTV) ratio of 73.6%.

Buyers face decreased return on investment as home prices and rates remained at challenging levels while economic uncertainty clouded the outlook, Redfin said.

Newfi initially established its partnership with residential transition loan provider Dunmor in June 2024 to help it open up funding capacity and establish its presence in the lending segment.

Activity from smaller mom-and-pop investors dominates the segment, but their impact on overall housing prices might be overstated, Corelogic's research found.

Gross profit returns fell in a range that could easily be erased on renovation, mortgage and tax charges, Attom said.

Investors bought 15.9% of U.S. homes sold in Q3, according to Redfin, a level similar to 2018 and 2019, when the share was around 14%.

Mortgage professionals are focusing on housing policies and the Federal Reserve this November.

Most of the investment community overall showed more favorable sentiment toward one presidential candidate than the other, but a subset of it begs to differ.

Their second quarter pace trailed pandemic highs but still accounted for one of every six homes sold nationwide.

The number of properties sold over the past year was the fewest since 2009, the National Association of Realtors said.

The deal is expected to open up "substantial funding capacity" for Los Angeles-based BARH Dunmore, which launched in 2021.

Compared to a year ago, investors bought a greater number of properties and made up a larger share of overall purchases, returning to the market faster than individual buyers, according to Redfin.

Texas' largest markets saw the least amount of profit gained from flipped homes last year, with Austin even posting a loss, according to Attom.

The segment demonstrated sustained resilience in the third quarter, growing its share of the market each month amid rate volatility, according to Corelogic.

Sun Belt cities saw the greatest annual decline in transactions over the third quarter, with Atlanta's number down to half of its level at the same time in 2022, Redfin said.