"Market conditions for real estate investors continue to prove challenging, with stubbornly high financing rates, rising labor and materials costs, and soaring insurance premiums taking a toll on investor profit margins, said Jeffrey Tesch, CEO of RCN Capital. These higher costs have also made affordability a problem for homebuyers especially first-time buyers which weakens demand and limits opportunities for fix-and-flip transactions."
"Roughly 44% of survey respondents identified as rental property investors, compared with 38% as flippers and 17% as wholesalers. Nearly 55% said they had shifted their primary investment strategy in recent years, often moving from flipping to rentals. But fix-and-flip investors expressed greater optimism than rental investors, with about 55% of flippers saying that market conditions had improved over the past year, compared with 27% of long-term rental property owners."
45% of investors view the market as better than a year ago, down from 49% in the prior quarter. About 30% said conditions were unchanged and 24% said the market had worsened. Forty-eight percent expect conditions to improve over the next six months. High financing rates, rising labor and materials costs, and soaring insurance premiums are squeezing investor profit margins and reducing buyer affordability. Investor purchases plans dipped modestly while the home-price outlook rose three points to 75. Investors are increasingly favoring rentals (44%) over flipping (38%), with many reducing prices or scaling back activity amid cost pressures.
Read at www.housingwire.com
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