October 11, 2024

Real estate investment firms purchased 9.6% of residential homes in King County in 2021. Slightly higher percentages were recorded in Pierce and Snohomish Counties.
Those percentages follow a nationwide trend: with inflation rates rising — the Consumer Price Index recorded a 9.1% year-over-year price increase across all consumer items as of June — investors have looked to real estate acquisition to hedge against inflation, with residential rentals and their annually variable rental prices attractive to investment firms looking to get ahead of the curve.
Across the U.S., investment firms acquired 13.2% of residential homes in 2021, up from 11.8% in 2020. The tri-county area rests slightly below that national average. Independent analysis conducted by the National Association of Realtors (NAR) offers the idea that a relatively high number of households, a density of minority groups and Millennials, and a disproportionate percentage of renters are market conditions most compelling for “institutional buyers” of residential homes, defined as companies, corporations, or LLCs.
“A big portion of homes that otherwise will be sold to first-time homebuyers, institutional buyers purchase this home,” Nadia Evangelou, NAR’s senior economist, told MyNorthwest.
“We also see, for example, in areas with a higher market share of institutional buyers, they’re purchasing homes above the median price compared to all buyers, so they increase the home prices … they offer all cash. First-time homebuyers cannot compete with, for example, international buyers because first-time homebuyers … don’t have equity … They do not have this equity to make a downpayment … While rents are rising fast as well, this also means a downpayment is becoming more challenging for first-time homebuyers.”
Scroll down to continue reading
More news from KIRO 7
VIDEO: Attempted catalytic converter theft leads to shooting in Newcastle
Monroe schools superintendent to resign, receive nearly $400K
‘Just the beginning’: Starbucks CEO says ‘many more’ store closings on tap
Do you have an investigative story tip? Send us an

in*********@ki***.com











” class=”link”>email at

in*********@ki***.com












DOWNLOAD OUR FREE NEWS APP 
All cash offers have obvious benefits for sellers, with institutional buyers also guaranteeing sales and waiving the inspection process, according to a NAR survey.
Institutional buyer shares are higher in areas with disproportionate numbers of renters: counties with renter shares closer to 30% recorded the highest percentages of investment acquisition. Of note, areas with relatively high numbers of institutional investments had roughly twice the number of black and minority households.
At the national level, 42% of properties sold to institutional investors were converted into rental properties, according to a NAR random sample of approximately 50,000 residential transactors. 45% were sold back or “flipped.”
More locally, a MyNorthwest analysis of King County real estate excise tax affidavits processed by the recorder’s office for June 1, 2022, through June 30, 2022, found that RedfinNow Borrower LLC acquired the most property of any buyer, purchasing 15 of the 5,630 properties recorded by the county for that month. The second most prolific buyer was the City of Seattle, purchasing 12 properties in June of 2022.
This story was originally published by MYNorthwest.
“Can’t wait to see the toilet.”
Traditionally, spring is real estate season, but buyers across the country were waiting for summer to finally see a return to normal inventory levels, normal competition and most importantly, normal…
In a year marked with high mortgage rates and an increase in housing supply, home prices continue to rise. According to Realtor.com, the national median listing price for a single-family home was…
Pandemic boomtowns are getting hit the hardest by the Pandemic Housing Slump.
Ledgerock has an almost cinematic quality to it; it feels like a riverfront hideout for tasteful superhero busy saving the world.
The stock market has trended lower this year, but it's not quite as beaten up as the cryptocurrency market. In November 2021, the cumulative value of all crypto tokens in existence topped $2.9 trillion, but just a few months ago that figure hit a low of $860 billion.
Priced out of the market? It's time to pivot.
A key indicator that's preceded every new all-time high since 1950 is now flashing, Fundstrat said in a note Wednesday.
Southern California home prices fell slightly in July from June as the housing market slowed, but values are still about 9% higher than a year earlier.
The listing comes just two months after Ellison reportedly paid $173 million for a nearby estate that belonged to Netscape billionaire Jim Clark.
Bankrupt cryptocurrency lender Celsius Network, which disclosed Monday that it was running low on money, said it has gotten several proposals to inject cash into the company and won approval from a U.S. judge to sell bitcoin (BTC) that it mines. Celsius lawyer Josh Sussberg disclosed the receipt of cash-injection offers during a Tuesday bankruptcy hearing but didn't say how big the offers were. Moving hastily on this is “mission critical” for Celsius, Sussberg said.
In doing so, digital users may be fanning the flames of a housing market crash, simply by making the term "housing crash" a household term on the internet these days. According to a new study by the luxury brokerage company RubyHome, internet search interest for "housing crash" skyrocketed 177% since August 2021, reaching an all-time high for the term since Google Trends started reporting in 2004. "The spike in searches about a housing crash suggests homeowners, particularly those thinking of selling, are increasingly nervous about their market timing," the RubyHome report stated.
Investors can buy the short-term Treasury bills, now yielding as much as 3%, from the government and brokers or through funds.
In this article, we discuss the 10 stocks that Jim Cramer recommends selling in August. If you want to read about some more stocks that Jim Cramer recommends selling, go directly to Jim Cramer Recommends Selling These 5 Stocks in August. Jim Cramer, the former hedge fund manager and present host of Mad Money on […]
In this article, we discuss the 10 stocks that Warren Buffett loaded up on for the rest of 2022. If you want to see more stocks in this selection, click Warren Buffett Loaded Up on These 5 Stocks for the Rest of 2022. Despite the high inflation and rising rates battering the US economy since […]
The stock market is finding support right now from two directions, a perception that the Fed is turning slightly dovish and will be a little less aggressive on its rate hikes going forward, and the Q2 earnings, which are coming in better than analysts had feared. The S&P 500 might still be down 10% for the year, but the index has gained 17% since its mid-June low, and with the macro environment appearing friendlier, investors will be hoping the change of sentiment won’t be a temporary one. Again
The IRS recently made changes to the amount of money that can be withdrawn each year from retirement accounts before age 59 1/2. As with the increase in overall inflation, the reasonable interest rate…
The pause on student loan repayments is ending soon, what are Biden’s options on student debt?
The so-called Rule of 20 has flashed at every market bottom since September 1974, according to Bank of America.
Education Sec. Miguel Cardona said he is "having conversations daily with the White House" on the student-loan payment pause that's expiring Aug. 31.

source

About Author