Investor sentiment has improved, influenced by better current market views and a positive outlook for the next six months. The share of investors believing the housing market has improved rose significantly, indicating a shift in sentiment due to changes in market conditions, such as increased home inventory and slowing price appreciation. Optimism is higher among fix-and-flip investors compared to rental property owners. Expectations for rising prices are prevalent, though many anticipate a slowdown in appreciation over the next year, with some investors adjusting their asking rents or prices accordingly.
Despite the improvement in investor sentiment, the measure remains below last year's reading of 116, driven by stronger views of current conditions and a positive six-month outlook.
The share of investors who perceive the housing market as better or much better than a year earlier jumped to 48% from 31%, reflecting alterations in market conditions.
Fix-and-flip investors show more optimism compared to rental property owners, with 53% of flippers stating conditions improved, contrasting with 33% of rental investors.
Expectations for rising prices remain significant, with 59% of respondents believing prices will rise, while nearly three-quarters expect appreciation to slow to less than 5%.
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