New Western, the largest national private real estate investment marketplace, today released a study on single family real estate investor sentiment and first-time home buyers’ perception of the housing market. Notably, 53 percent of residential real estate investors expect business growth in 2024, while 55 percent of consumers feel that local investors can help solve the housing shortage.
Key Highlights:
-
79 percent of consumers who have considered purchasing a home in the past 12 months have not yet bought one making 2024 a ripe year for home purchases. Biggest barriers are mortgage rates and finding the right home. Further, 30 percent of consumers who have considered purchasing a house in the past 12 months are first-time home buyers.
-
A little over half of those who have not purchased a home yet are worried about finding a home in the next year, though they remain optimistic.
-
Right now, investors are motivated first by profit potential but are also eager to diversify their investment portfolio and provide housing options that are more affordable to home buyers. Further, location/neighborhood consistently remains the most important factor for investors’ buyers outperforming interior design, outdoor space and home square footage.
“As we enter the new year with continued low inventory, local investors are providing solutions to the shortage by fixing up unlivable homes and putting them back on the market, giving consumers more options for their home buying search,” said Kurt Carlton, co-founder and president of New Western. “Investors are fueled by the opportunity to capitalize while delivering much needed residential properties back to the market.”
From the first half of 2023 to the second half, New Western saw growth nationwide with local markets Houston, Raleigh, Atlanta, Denver and Austin leading the increase in investor-purchased homes. Additionally, New Western saw a 16 percent rise in investor purchases in the West and 6.5…
Read the full article here