Schaedler Real Estate Blog

How High Interest Rates Are Handing the Market to Investors—and What That Means for YouThe U.S. real estate market has seen a dramatic shift over the past two years. With interest rates hovering at levels not seen in decades, traditional homebuyers—especially first-time buyers—are finding it increasingly difficult to afford a home. But there’s one group that isn’t sitting on the sidelines: investors.

In 2024 and 2025 alone, investors purchased over $52 billion worth of real estate in the United States. Why? Because the current market conditions are tailor-made for them. High interest rates keep everyday buyers at bay, giving investors a rare advantage to swoop in with cash offers, negotiate below-market prices, and secure properties that will only grow in value.
The Investor AdvantageMost homebuyers rely on financing. When interest rates climb, monthly payments become less affordable, and buyer demand softens. For investors with cash in hand, this is an ideal environment. Fewer competing offers mean more negotiating power—and more favorable deals.
This is especially impactful when you consider that annual home sales have dropped from a typical 6.5 million transactions to just 3.8 million. Investors are keeping the market moving, but not without consequence.
What Does This Mean for the Future?When investors buy homes today, they often renovate or hold them until they can resell at a higher price. That may be a smart business move, but it also contributes to future price inflation. The longer interest rates remain high, the more buyers are pushed out—and the more homes investors can acquire and control.
As a result, future homebuyers may face even steeper prices, making it harder to enter the market later.
If You’re a Homeowner: Timing MattersIf you’ve been thinking about selling, this may be the most strategic window in years. Once interest rates begin to drop, buyer activity will surge again—and you’ll want to be ahead of the curve. By listing while serious, cash-ready investors are still active, you’re maximizing your chances of selling quickly and at a strong price.
At Schaedler Real Estate, We Believe in HomeownershipWe believe homeownership should be accessible, not something reserved for Wall Street portfolios. That’s why we advocate for policies that support responsible lending, lower mortgage rates, and an open, competitive market.
If you're considering selling—or wondering how these market shifts affect your real estate goals—let's have a conversation. The right strategy can turn uncertainty into opportunity.