U.S. Home Investor Share and Flipping: Insights into Early Summer 2023 and the DC Market

The U.S. housing market has seen significant shifts over the past years, with investor activity and flipping strategies playing a key role. A recent report by CoreLogic details the trends and state of home investor share as of early summer 2023, with a particular focus on investor purchases, market share by size, home-flipping activity, and regional trends like Washington, D.C.

Steady Investor Share

Investor share in U.S. home purchases remained consistent at 27% in March 2023, dropping slightly to 26% by June (CoreLogic, 2023). This steadiness has persisted despite seasonal fluctuations, reflecting a robust investor presence in the market.

Investor Activity by Size

The report highlights shifts in investor activity by size. Mega-investors, owning 1,000 or more properties, saw a decline in market share, while smaller investors owning three to nine properties accounted for 47% of investor purchases in June 2023, the highest level since 2011 (CoreLogic, 2023).

Flipping and iBuying Activity

Home-flipping activity lagged in the second half of 2022, with only 12% of investors reselling properties within six months by June 2023. However, the decline may have bottomed out, with expectations of a slight rise in the flip rate (CoreLogic, 2023). iBuyer activity, a specific type of house flipping, also showed a slight uptick, indicating a potential increase in overall flipping.

The DC Market: A Leading Investor Share

Among states, Washington, D.C. posted a significant investor share of 33% in Q2 2023, 10 percentage points higher than neighboring Virginia and Maryland (CoreLogic, 2023). This gain highlights the unique dynamics of the DC market, where investor activity remains strong and distinct from nearby areas.

Small Investors and Rental Demand

The rise of small investor activity may be attributed to rising demand for rental properties and constrained inventory levels. Many owners are opting to rent rather than sell, leading to unaffordable rates and increased investor activity in the market (CoreLogic, 2023).

Conclusion

The report “US Home Investor Share Remained High in Early Summer 2023” by CoreLogic offers a comprehensive view of the current state of the U.S. housing market, including investor share, flipping trends, and specific insights into the DC market. The nuanced picture of investor activity, coupled with regional insights like Washington, D.C.’s significant gain, offers valuable perspectives for real estate professionals and investors.

For those in the DC Metro area, understanding these national and local trends can guide investment strategies and decision-making in a dynamic and evolving market.

Source: CoreLogic, Inc. (2023). US Home Investor Share Remained High in Early Summer 2023. CoreLogic Public Records Data.