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edfin reports that U.S. real estate investor purchases declined 3.9% year-over-year in Q4, reaching 47,004 homes - the lowest level for that period since 2016. The decline is attributed to high home prices, elevated mortgage rates, tepid demand, and economic uncertainty. Investor market share dropped to 17.1% of total home purchases, down from 19% year earlier.

    Florida markets experienced significant declines, with Orlando (-27.5%), Miami (-21.3%), and West Palm Beach (-14.5%) among the top five metros for decreased investor activity. Conversely, Bay Area markets saw increases, led by Seattle (+33.8%).

    Notable trends include:

    * Condo purchases fell 13% YoY to a 12-year Q4 low

    * Single-family homes remained dominant at 69.4% of investor purchases

    * Low-priced home purchases remained stable while high-priced declined 3.5%

    * Total investment value reached $36.5 billion, up 6.3% YoY

    Investor activity is declining nationwide due to slow homebuying demand, a lackluster rental market, economic uncertainty, and elevated interest rates. Investor purchases of condos dropped 13% year-over-year to their lowest level since 2012.

    Florida investors are pulling back fastest, with Orlando (-27.5%), Chicago (-23.3%), Miami (-21.3%), Atlanta (-18.4%), and West Palm Beach (-14.5%) experiencing the largest declines in investor purchases.

    Investor market share dropped most in Florida, particularly in Orlando, where investors purchased 20.7% of homes that sold, down from 26.6% a year earlier.

    On the other hand, Bay Area markets saw increases, led by Seattle (+33.8%), San Jose (+21.1%), Oakland (+19.4%), San Francisco (+19.1%), and Detroit (+15.5%).

    Investor purchases of single-family homes fell 1.6% year-over-year, while purchases of townhouses dropped 6.1%. Investors bought 2.9% more multi-family properties than a year earlier.

    Most investor purchases are single-family homes, with nearly seven in ten (69.4%) properties investors bought in the fourth quarter being single-family homes.

    Investor purchases of low-priced homes held steady, while high-priced home purchases declined 3.5%.