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80 The Big Finish Wrap your head around the market's leading indicators. INVESTOR HOME-PURCHASING SLOWS IN Q4 While investor purchasing activity dropped over the last year, so did all purchases, which were down during the fourth quarter 40.8% year over year. On a quarterly basis, much of the drop occurred during the fourth quarter alone, as on a quarterly basis, investors purchased 27%, which in itself is the largest quarterly drop on record. "While many investors have pumped the brakes on homebuying, investor market share has remained fairly steady," Redfin said. "at's because individual homebuyers have also pulled back. Investors purchased 17.8% of all homes that were bought in the metros tracked by Redfin in the fourth quarter. at's comparable with 17.6% in the prior quarter and down from 19.4% a year earlier." "In dollar terms, investors bought $31 billion worth of homes in the fourth quarter, down 42.7% from $54.1 billion one year earlier and down 27.5% from $42.8 billion one quarter earlier. e typical home investors purchased cost $425,926, little changed from one year earlier but down 5.8% from one quarter earlier." But recent drops in mortgage rates and a decline in home prices—however slight—may re-entice investors back into the market. "It's possible that investors will start to wade back into the market this year given that mortgage rates have ticked down from their 2022 high—especially if home prices show signs of bottoming," Redfin Senior Economist Sheharyar Bokhari said. "But it's unlikely that investors will return with the same vigor they had in 2021. at's good news for individual buyers, who are still grappling with high housing costs but no longer losing bidding war after bidding war to investors." Metros With Largest Declines in Investor Home Purchases, Q4 2022 Source: Redfin, "Investors Are Buying Roughly Half As Many Homes As ey Were A Year Ago" Las Vegas, NV YoY CHANGE: -67.0% Phoenix, AZ YoY CHANGE: -66.7% Nassau County, NY YoY CHANGE: -63.0% Atlanta, GA YoY CHANGE: -62.8% Charlotte, NC YoY CHANGE: -61.9% Jacksonville, FL YoY CHANGE: -57.1% Nashville, TN YoY CHANGE: -54.8% Sacramento, CA YoY CHANGE: -53.5% Riverside, CA YoY CHANGE: -53.0% Orlando, FL YoY CHANGE: -51.8%

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