Most (72%) real estate investors say the market is as good or better than it was last year, and 75% expect stability or improvements over the next six months.
NEW YORK – Real estate investors believe that market conditions have improved and will continue to get better in the coming months according to the Fall 2023 Investor Sentiment Survey from RCN Capital, conducted by market intelligence firm CJ Patrick Company. Almost three quarters of the investors surveyed (72%) said market conditions for investing were better or the same as a year ago, and 75% believed conditions would improve or remain stable over the next six months.
“Despite higher home prices, higher financing costs, and limited inventory, real estate investors continue to express optimism about market opportunities today and in the months ahead,” said RCN Capital CEO Jeffrey Tesch. “Investors continue to play an important role in the housing market according to a recent report from CoreLogic, more than one in four home sales is to an investor, and we continue to see interest from both rental property buyers and fix-and-flip investors in our business.”
The Fall 2023 Investor Sentiment Survey is the second quarterly report from RCN Capital taking the pulse of real estate investors across the country, identifying market challenges and opportunities, and getting feedback on current trends and events.
Investor sentiment on the current state of the real estate market improved from the Spring 2023 Survey, with 49% saying conditions are better than they were a year ago compared to 30% in the spring. Views on the market six months from now also improved, with 44% believing conditions will improve, up from 30% in the prior survey.
Despite the optimism, investors are moving forward prudently: only 22% plan to buy more properties than they did a year ago; 39% plan to buy the same number; and 39% plan to buy fewer.
“Interestingly, fix-and-flip investors seem much more optimistic about future opportunities 50% of them believe that conditions will improve over the next six months compared to just 24% of rental property investors,” noted Rick Sharga, CJ Patrick Company CEO. “That may be an indication that flipping activity has bottomed out, but may also be a reflection of current challenges in the rental market, with rates continuing to decline even as more rental inventory comes online.”
Investors continued to see the impact of higher mortgage rates in their local markets. Over 30% have seen a decline in demand for owner-occupied homes; almost 21% have seen an increase in demand for rental properties; and 37% have noted both trends.
