R
eal estate investors remain optimistic about their businesses, according to a quarterly survey conducted by RCN Capital and the CJ Patrick Co. The Fall 2024 Investor Sentiment Index found that 68% of respondents believe the current housing market is "better" or "much better" than it was a year ago, up from 60% in the previous quarter.

    The share of investors viewing market conditions as "worse" or "much worse" decreased to 13%, down from 20%. Looking ahead, 71% of investors expect the market to improve over the next six months, while only 9% anticipate a decline. This represents the largest gap between positive and negative sentiment in any of the six surveys conducted by RCN and CJ Patrick.

    Investors cited two main challenges: financing costs and insurance expenses. Financing has been the top concern since the survey's inception, with mortgage rates remaining higher than many buyers would like. Over half of respondents believe that financing will still be a major challenge in six months, down 10 percentage points from the previous quarter.

    Insurance was also a significant concern, with nearly 80% of respondents saying it factored into their investment decisions. In states prone to extreme weather events, such as California and Florida, insurance issues were even more pressing, affecting 97% and 93% of investors respectively.

    Other common difficulties cited by investors included lack of inventory (40%) and rising prices (37%). The survey also touched on politics, with respondents favoring Kamala Harris over Donald Trump in the upcoming presidential election. At a national level, Harris was seen as the better option for creating a strong environment for real estate investors. However, long-term landlords in Florida and California preferred Trump.

    "Survey respondents are optimistic about the future, driven by improving market dynamics," said RCN Capital CEO Jeffrey Tesch. "However, financing costs and insurance expenses remain significant challenges."