Move, Inc. just announced the results of a national survey of real estate investors. The primary news bullet is that investors are expected to outnumber traditional home buyers by three to one for the next two years. Other data and market information received from investors in this survey include:
-Investors expect competition for the best deals from retail buyers, especially first time home buyers.
-Investors expect to prevail in this competitive environment due to the problems retail buyers will have in getting mortgages.
-43.5% of investors expect it to get more difficult to snag bargains in the coming months.
-While 22% expect prices to rise in the next six to twelve months, 53% expect prices to remain relatively flat.
-Half of investors report that they’ll hold their properties for five years or longer, while 11% say they plan to sell within 12 months.
-As far as profit expectations:
o Nearly half expect to profit by 20% or more.
o 40% of investors expect a profit of 10%.
o 6.5% expect a return of 5% or less on their investments.
-28% plan to buy a vacation property, while 30% are interested in buying retirement property as an investment.
-As for experience in real estate investment:
o 60% said they’re new to real estate investing.
o 33% are considering their first investment purchase.
o 8.5% are in the process now of buying or selling their first investment property.
o Of those surveyed, only 36.5% said that they had experience in more than one investment property transaction.
It seems that the market climate is attracting a lot of new investors, and experienced investors will have some competition. However, it’s knowledge and experience that will make the winner, so keep learning and doing deals.
Move, Inc. just announced the results of a national survey of real estate investors. The primary news bullet is that investors are expected to outnumber traditional home buyers by three to one for the next two years. Other data and market information received from investors in this survey include:
-Investors expect competition for the best deals from retail buyers, especially first time home buyers.
-Investors expect to prevail in this competitive environment due to the problems retail buyers will have in getting mortgages.
-43.5% of investors expect it to get more difficult to snag bargains in the coming months.
-While 22% expect prices to rise in the next six to twelve months, 53% expect prices to remain relatively flat.
-Half of investors report that they’ll hold their properties for five years or longer, while 11% say they plan to sell within 12 months.
-As far as profit expectations:
o Nearly half expect to profit by 20% or more.
o 40% of investors expect a profit of 10%.
o 6.5% expect a return of 5% or less on their investments.
-28% plan to buy a vacation property, while 30% are interested in buying retirement property as an investment.
-As for experience in real estate investment:
o 60% said they’re new to real estate investing.
o 33% are considering their first investment purchase.
o 8.5% are in the process now of buying or selling their first investment property.
o Of those surveyed, only 36.5% said that they had experience in more than one investment property transaction.
It seems that the market climate is attracting a lot of new investors, and experienced investors will have some competition. However, it’s knowledge and experience that will make the winner, so keep learning and doing deals.