Property Play: Housing investors say this is their worst market in at least 3 years
CNBC • • business
Key Points:
- Investor confidence in the single-family housing market has dropped to an all-time low, with only 26% believing market conditions have improved compared to a year ago, while 45% feel conditions have worsened.
- Concerns driving pessimism include rising interest rates, increased insurance and home renovation costs, limited inventory, downward pressure on rental rates, and geopolitical tensions related to the ongoing war with Iran.
- The survey primarily reflects the sentiment of small- to mid-sized investors, who often rely on bridge loans and conventional fixed-rate mortgages, with 28% of recent purchases made in cash.
- Mortgage rates, which briefly dipped in February, have surged to their highest levels in over a year following the escalation of the war with Iran, with over half of investors citing high financing costs as a major market challenge.
- Most investors surveyed do not anticipate any near-term relief in mortgage rates, with three-quarters expecting rates to remain high or increase further.
