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Housing Slowdown Chills Investors Who Supercharged US Market

Institutional landlords and small flippers are starting to scale back as higher borrowing costs and slowing sales complicate their strategies. 

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US Housing Market Cools Off

Investors — from small-time flippers to Wall Street-backed landlords — helped propel US home prices to record levels during the pandemic boom. But now, they’re pulling back as recession risks mount, in a move that could accelerate the market’s slowdown.

Institutional landlords are canceling contracts and getting more particular about purchases. The tech-powered home flippers known as iBuyers are slashing asking prices to clear inventory. Small-time property hounds are passing on homes they would have bought three months ago because higher borrowing costs make it harder to turn a profit.