Two reports from real estate brokerage Redfin show investor activity hit an all-time high during the third quarter of 2021 and buyer demand also recently hit an all-time high.

Redfin’s homebuyer demand index hit its highest level in the four-week period ending November 14. It was the peak demand for the index since at least 2017, when the brokerage began tracking requests for home viewings and other home-buying services. According to Redfin chief economist Daryl Fairweather, buyers who couldn’t find a place to buy in the spring are coming back this fall in the hope that more homes will become available.

Unfortunately, active listings, which refer to all homes on the market and not just new listings, are down 22% in the four-week period ending Nov. 14 compared to the same period. in 2020, and 41% compared to the same period. period in 2019.

Prices have also increased across the country. Data from Redfin shows that the median sale price of $357,881 in November represented an increase of 13% from November 2020 and 30% from November 2019.

Despite higher prices, homes continued to sell quickly. According to Redfin, 45% of homes sold within two weeks of listing and 32% sold within a week during the four-week period ending November 14. Both of these figures were well above the figures for 2020 and 2019.

Investors’ increased appetite for homes is a contributing factor to the lack of homes for sale and rising prices. Rather than buying and selling properties to new buyers, more and more investors are now holding onto homes to earn rental income, according to Redfin. Rental demand has increased in recent years among potential buyers who cannot find a place to buy or cannot afford a home in their preferred location.

A record 18.2% of all home purchases were made by investors during the third quarter of 2021, according to a new report from Redfin. This figure was up from 16.1% in the second quarter of 2021 and 11.2% from the third quarter of 2020.

The number of homes purchased by investors – 90,215 – during the third quarter of 2021 represents an 80.2% increase in the number of homes purchased by investors during the third quarter of 2020. Most investors – 76, 8% – buy homes with cash, making it difficult for traditional buyers to compete. Investors primarily purchased single-family homes, which accounted for 74.4% of all investor purchases, compared to 16.9% condos and co-ops, 5.4% townhouses, and 3.4% apartments or of duplexes.

The highest share of home purchases by investors occurred in Atlanta, where nearly a third (32%) of homes were sold to investors during the third quarter of 2021. Other metro areas with the highest investor shares were Phoenix (31.7%), Charlotte (31.5%), Jacksonville, Florida (28.3%) and Miami (28.1%).

Metro areas with the lowest share of investor purchases were Providence, RI (5.4%), Montgomery County, Pennsylvania (7.1%), Virginia Beach (7.1%), Washington, DC ( 7.2%) and Warren, Michigan (7.4%). percent).