When home prices were skyrocketing during the pandemic, real estate investors became more active in the market. The promise of being able to buy and flip a home for profit was enticing for money-minded buyers but also a problem for traditional buyers – particularly first-time buyers – who had to compete with investors for available homes at a time when there were fewer for sale. Since then, prices have cooled and, according to one recent analysis, so has investor activity in the market. In fact, the data shows investor purchases down 6 percent year-over-year during the first quarter of 2026, pushing overall activity to its lowest level since 2020. Before that, the last time this little investor activity was seen in the market was 2016. But while fewer investors in the market makes more room for other buyers, the reasons behind the drop, including higher mortgage rates and slower price growth, impact all buyers. (source)
