{"id":160520,"date":"2023-10-11T17:22:46","date_gmt":"2023-10-11T23:22:46","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=160520"},"modified":"2024-02-28T10:58:43","modified_gmt":"2024-02-28T17:58:43","slug":"investors-are-feeling-good-according-to-fall-investor-sentiment-survey","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/investors-are-feeling-good-according-to-fall-investor-sentiment-survey","title":{"rendered":"Real Estate Investors Are Feeling\u2026Good? What the Latest Survey is Saying About Their Attitudes"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC3036977105\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The market may not be ideal, but according to a new survey, most real estate investors are feeling good about it as we hurtle toward 2024.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a class=\"editor-rtfLink\" href=\"https:\/\/www.prnewswire.com\/news-releases\/real-estate-investors-optimistic-about-the-future-according-to-fall-2023-rcn-investor-sentiment-survey-301945663.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">RCN Capital\u2019s fall investor sentiment survey<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;shows that nearly three in four investors think market conditions are better or at least the same as this time last year. Another three-quarters believe the market will either improve or hold steady for the next six months.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">\u201cDespite 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,&#8221; said Jeffrey Tesch, CEO of RCN Capital, in a press release. &#8220;Investors continue to play an important role in the housing market.\u201d<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">He\u2019s right about that: According to a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"http:\/\/corelogic.com\/intelligence\/us-home-investor-share-remained-high-early-summer-2023\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">recent report<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;from data firm CoreLogic, investors account for 26% of single-family home sales. In June\u2014the most recent data available\u2014investors made a whopping 82,000 purchases.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Just what types of investors are those, though? And what headwinds will they face as we finish 2023? Here\u2019s what you need to know.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Who\u2019s Investing?<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Small investors (those with less than 10 properties) account for the bulk of investment purchases at nearly 50%. Medium-sized investors (10 to 99 properties) come in second, at around 35% of all purchases.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">While fix-and-flip investors typically fall into those categories, their activity waned significantly in 2022, likely on the backs of rising mortgage rates. They appear to be on the way up, though\u201412% of investors who purchased a home in December 2022 resold by the end of June 2023\u2014up slightly from just a few months prior.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">That upswing tracks with what RCN\u2019s survey shows. According to the findings, fix-and-flip investors are particularly optimistic about the future, with half saying they think market conditions will improve in the next six months. (Under a quarter of rental property investors said the same).<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">\u201cFix-and-flip investors seem much more optimistic about future opportunities,\u201d says Rick Sharga, CEO of CJ Patrick Company, in a press release. \u201cThat 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.&#8221;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Prepare for Storms<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Though investors\u2014particularly fix-and-flip ones\u2014seem to be optimistic, that doesn\u2019t mean things will be easy. There are still plenty of challenges to be faced in the coming months, some of which we have little idea of how they\u2019ll actually play out.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">For one, a potential recession is afoot. (<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/deutsche-bank-says-recession-is-100-percent-likely\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Deutsche Bank actually puts the chances at 100% now<\/span><\/a><span data-preserver-spaces=\"true\">).&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">There\u2019s also another possible government shutdown looming in November. And while Congress has eked out a solution in the last-ditch hours of budget meetings in the past, it\u2019s now down a Speaker of the House\u2014making the chances of another compromise even smaller.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Finally, continued&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/mortgage-rates-reach-multidecade-highs-as-housing-demand-slips\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">high mortgage rates<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;are throwing a kink in things, too. While today\u2019s rates certainly aren\u2019t at the highest levels the U.S. has seen, they\u2019re still at multidecade highs. And according to most forecasts, they\u2019re going to stay fairly high for a while.&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.fanniemae.com\/media\/49096\/display\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Fannie Mae\u2019s latest forecast<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;projects a 7.1% average mortgage rate by year\u2019s end and 6.8% in the first quarter.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">That\u2019s a small dip, at least, but it\u2019s unlikely to give investors much financial relief\u2014especially when 76% cite the cost of financing as the biggest issue they face these days.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The silver lining for investors might be waning buyer competition and increased need for rentals that continued higher rates can cause. As RCN Capital put it: \u201cInvestors 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.\u201d<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_0fb12a7afc63f2af53a6472b51cbe54d\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_c2b046355933d7528373a25809c90054\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size wp-block-paragraph\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color wp-block-paragraph\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_c736ea428e55776b327d32c21480e874 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Agent Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/investors-are-feeling-good-according-to-fall-investor-sentiment-survey&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color wp-block-paragraph\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/investors-are-feeling-good-according-to-fall-investor-sentiment-survey&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>A recent survey from RCN Capital took stock of investor attitudes towards the economic climate. Here&#8217;s what they said.<\/p>\n","protected":false},"author":613679,"featured_media":160523,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8,7119],"tags":[],"class_list":["post-160520","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/160520","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613679"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=160520"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/160520\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/160523"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=160520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=160520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=160520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}