Inventory growth fueled by 10 new market openings this year including the latest in Washington, D.C.; Fix-and-flip properties purchased through New Western's marketplace sell for up to 31% less than new builds
DALLAS, Aug. 25, 2022 /PRNewswire/ -- New Western, the largest national private marketplace for fix-and-flip residential investment properties, announced today that the company has made home ownership accessible for more Americans by growing U.S. housing inventory by 6,540 units to date in 2022. Without building a single home, New Western accomplished this increase thanks to its data, advanced knowledge of local markets and its business model, which includes obtaining inventory from among the 16 million vacant homes across the United States as well as other off-market properties for less than $250,000 on average. As a result, homes that are purchased through New Western's marketplace and later renovated sell for up to 31% less than new builds.
New Western's unprecedented growth in 2022 is driven by its rapid expansion into 10 new markets for a total of 50 locations nationwide. This includes its newest office in Washington, D.C., where New Western has set a goal to revitalize almost $1 billion in properties in that region over the next five years. New Western identified the District of Columbia and its surrounding cities as a strong opportunity for investors because of the need locally for a disruptive force in the residential real estate market: The median sale price of a single-family home in Washington, D.C., in July was $1.153 million, and just 98 homes sold that month, down 19% from July 2021 from Redfin. With 81.8% of homes in the D.C. metro area alone built before 2002, New Western will help address the affordable housing crisis in the D.C. area by returning aged and distressed homes to the market.
"Our rapid growth continues to enable us to improve the quality of opportunity that New Western provides, especially as we launch into one of the largest metropolitan markets in the United States," said Kurt Carlton, co-founder and president of New Western. "D.C.-area home prices have been rising for 13 consecutive years. We are in a unique position to deliver much needed inventory to this market and look forward to creating more affordable housing. I'd like to express my gratitude to all our employees for their hard work and commitment to deliver on this promise."
New Western's model is growing residential housing inventory in the United States at a time when home ownership is increasingly out of reach for many Americans – due in part to low inventory and cost. Although housing inventory rose in May by 8%, that was the first monthly increase since June 2019. When compared to May 2020, active home listings have decreased by 48.5%, pushing prices up by record amounts in many cities from Realtor.com.
"New Western offers substantial opportunity for sellers, buyers, and investors, as well as a positive impact in many neighborhoods. Their unique marketplace delivers value-add homes that would otherwise be unappealing to most residential homebuyers – something I really appreciate as a Chicago native," said Joan Kaufmann-Stube, Managing Broker of Circled Squared Real Estate in New Lenox, Ill. "In addition to the great value New Western brings to the real estate ecosystem, one of the main reasons I recommend New Western's marketplace to my investor clients is because their inventory is available on a first-come, first-served basis, eliminating bidding wars and increasing investor profitability."
Born out of the chaos of the 2008 foreclosure crisis, New Western consistently stands strong as a pillar of economic promise, thriving throughout times of hardship. On average, New Western buys a property every 13 minutes, has bought and sold approximately $12 billion in residential real estate. Fueled by more than 100,000 active investors and the belief in making real estate investment more accessible, New Western's fierce momentum has positioned the company to acquire 10,000 properties and nearly $5 billion in transaction volume by the end of 2022. In addition to Washington, D.C., New Western market openings this year include: Birmingham, Ala.; Chicago; Fort Myers, Fla.; Greenville, S.C.; Indianapolis; Jacksonville, Fla.; Orlando, Fla.; Pittsburgh; and Salt Lake City.
For more information about New Western, please visit https://www.newwestern.com.
About New Western
New Western makes real estate investing more accessible for more people. Operating in most major cities, our marketplace connects more than 100,000 local investors looking to rehab houses with sellers. As the largest private source of investment properties in the nation, we buy a home every 13 minutes. New Western delivers new opportunity for all—a fresh start for sellers, exclusive inventory for investors, and affordable housing for buyers. For more information, visit www.newwestern.com.
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SOURCE New Western