According to a recent article on WRE News, "Real estate investor sentiment declined during the first quarter to the lowest recorded score in 11-quarter history of the RCN Capital/CJ Patrick Company Investor Sentiment Index.
The 14-point drop to an index score of 87 was also the first time that all four elements analyzed in the index – current market conditions, outlook for future market conditions, home price trends, and plans for property purchases – declined quarter-over-quarter.
The percentage of investors who viewed today’s market as better or much better than it was a year ago fell to 36% from 45% in the previous quarterly survey. Those who viewed the market today as being worse rose from 25% to 36%. Only 32% of investors expected market conditions to improve, down from 44% in the prior quarter, while the number expecting conditions to worsen jumped from 19% to 32%."
Insurance factors contributed to investor's concerns per the article.
Recently I was making calls to agents who work in the multi-unit space to pitch a fourplex listing I have. Most indicated they, or their clients, were sitting on the sidelines right now with concerns about rising insurance and dropping rental rates as well as the war in Iran and geopolitical issues. Prices are not drastically falling to reflect this concern however they could if inventory sits long enough.
