Investors are continuing to make it harder and harder for regular buyers to purchase homes, Bloomberg reports.
All-cash sales’ share of total home purchases — an indicator of investors’ share of total home purchases — jumped to 49 percent in September from 40 percent in August, according to RealtyTrac.
All-cash deals’ share of total sales had already been rising at a rapid clip recently, but September’s increase seems to be the steepest recorded in well over a year.
The data aggregator also said that institutional investors accounted for 14 percent of total home purchases, the highest level that the firm has measured since it started tracking such sales in 2011.
One reason for investors’ strengthening grip on the market may be the recent spike in mortgage rates, which has made it harder for regular buyers to compete with investors.
“The investors are ruling the market,” one contractor told Bloomberg. “The little guy can’t win if he’s up against a deep-pocket investor.”