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Much has been reported this week on the rapid clip in which home prices are rising across the Charlotte area.
That’s as Canopy Realtor Association released its monthly report on home- resale activity in the region and UNC Charlotte’s Childress Klein Center for Real Estate issued its annual “State of Housing in Charlotte” report for 2021 — both of which showed steep price gains here.
Add this to the equation: Charlotte continues to rank among the top U.S. cities where real estate investors are swooping in, taking away opportunities from local buyers and further driving up prices. That’s according to a Realtor.com analysis that ranked 10 cities where first-time buyers are most in battle with investors for a home.
The report put the Queen City’s share of investor buyers at 13% in July, landing it at No. 4 on the list. The median list price of a Charlotte home in September was $390,000 and the median rent was $1,543, according to Realtor.com. Other markets included in the ranking were Memphis, Tennessee: 17% investor share; Birmingham, Alabama: 16%; St. Louis: 14%; Jacksonville, Florida: 13%; Phoenix: 12%; Oklahoma City: 11%; Indianapolis: 10%; Louisville, Kentucky: 10%; and Las Vegas: 10%.
“Investors are particularly attracted to affordably priced homes, the very homes that would normally be appealing to first-time buyers,” said Realtor.com’s manager of economic research, George Ratiu, in the report. “Investors who generally come with cash have a significant advantage over first-timers who typically rely on a mortgage. In a market with few homes for sale already, this prices out many buyers.”
This report noted that, while frustrating to traditional buyers, investors can drive a positive impact on the real estate market as a whole by helping update aging housing stocks through renovations. It can also help replenish depleted inventories — if investors end up selling the home they’re renting out.
The report, based on an analysis of deed records in the nation’s 50 biggest metro areas, focused on large investor groups rather than individual investors. The list was limited to one metro per state.