RealtyTrac surveyed over 300 individual real estate investors across the country to find out how they viewed the market, what problems and opportunities they faced, and what their impression was of today’s environment for real estate investing. Here are some of the key findings:
About 48% of investors believed that the investment market is worse or much worse than it was a year ago, and 36% believe that conditions will remain the same over the next six months. Rising home prices (63%) have replaced lack of inventory (57%) as the #1 challenge cited by investors.
Competition from traditional homebuyers (28%) fell out of the top three problems for investors and was replaced by increased material costs (36%). Many investors believe that ongoing competition from homebuyers will continue to be a challenge and 27% said it will likely remain a top concern six months from now.
Investors are also worried about inflation – about 81% were concerned about inflation causing material and labor costs to rise, making affordability an issue for prospective homebuyers and renters, and increasing the costs of financing.
About 30% of the respondents believe that foreclosure activity will return to its normal, historical level (about 1% of mortgage loans in a given year), while 33% said that foreclosures will surpass normal levels, but remain well below the levels seen during the Great Recession.
You can find the press release here and see other survey results in the charts below.