Real Estate Investors: Less Optimistic About U.S. Housing Market?
RealtyTrac: 48% of individual RE investors see the investment market as worse than a year ago; and 57% of investors cite lack of available inventory as a top concern.
NEW YORK – According to a new RealtyTrac survey, 48% of individual real-estate investors view the investment market as being worse or much worse than it was a year ago. That’s up from 45% of investors in last year’s edition of the same survey.
Small scale real-estate investors are less enthusiastic about the state of the U.S. housing market, with 63% of respondents listing the rising costs of homes as a major challenge.
The lack of available inventory was cited by 57% of investors as a top concern, according to the survey. Other major worries included the cost of materials and labor for home building and improvement projects, as well as competition from traditional home buyers.
Moreover, RealtyTrac found that the number of homes in foreclosure is at the lowest level on record (down 70%), thanks to the availability of mortgage forbearance and an ongoing moratorium on foreclosures at the federal level.
The survey found that many investors are divided as to whether they believe foreclosure activity will return to normal in the future or surpass typical levels. Due to the appreciation in home prices, many people who are in forbearance and behind on mortgage payments may be able to sell their homes rather than go into default.
Source: MarketWatch (09/29/21) Passy, Jacob
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