This reflects a rise in investor skepticism since the start of the pandemic, as previous surveys conducted by the National Mortgage News showed that only 33% of individual investors felt negative about the housing market.
The survey was conducted amongst two hundred people with investments in domestic real estate and spanned across the United States. It uncovered the fact that even with an increase in the number of people taking part in the real estate market, there remains a high degree of uncertainty and hesitance when making investment decisions.
When asked to rate their outlook on the future of the housing market, the survey found that half of individual investors had a pessimistic view, while the other half were either neutral or felt optimistic. The majority of investors who felt pessimistic about the state of the housing market expressed concerns over the possible effects of the pandemic on the property market, including its impacts on job security, affordability, and availability of financing in the years to come.
The survey also revealed that the main drivers of consumer sentiment are related to the labor market and economic conditions. Nearly 70% of those surveyed cited rising unemployment numbers as a major contributor to their pessimistic outlook. Other components that were taken into consideration included the availability of affordable homes, potential volatility in mortgage rates, and an unpredictable lending landscape.
The survey concluded that a significant percentage of individual investors remain concerned about the future of the housing market despite positive indications from other sources, such as the housing market index which has recently been trending higher. This is reflective of broader cautionary sentiments about the future of the economy as people grapple with the continued uncertainty of the pandemic and worry about the future of the housing sector.
Based on findings from the National Mortgage News survey, it can be concluded that half of individual investors remain extremely cautiously pessimistic about the state of the housing market amidst the current uncertain economic environment. This pessimistic outlook highlights the importance of financial literacy, a deep understanding of the housing market, and proper planning for those looking to invest in the property market. Purchasing a home should not be done without proper research and advisors, as there are a lot of factors to take into account that can determine the success of your purchase.
This article was contributed on Oct 20, 2023