Finance in Focus: Rates, Inventory, and Investor Ingenuity

Market Memo

Key market updates to stay ahead of the game, from data expert, Rick Sharga of CJ Patrick Company, LLC .

• Mortgage rates are moving higher, but should gradually decline back towards 6% by year-end.
• Prices are declining in the new home market, but may have bottomed out in the existing home market.
• Investors need to factor in increasing costs of insurance premiums, especially in states experiencing extreme weather events.
• Highest mortgage rates in 23 years likely to keep home sales depressed, presenting challenges for flippers, but opportunities for rental property owners.
• Higher finance costs = less competition for available inventory from consumers. BUT, investors need to be creative and find homeowners that need to sell.
• No home price crash or foreclosure wave on the horizon, even with a recession, so investors shouldn't be waiting for "bargain properties."

RCN Capital's Fall 2023 Investor Sentiment Survey

Our Fall 2023 Investor Sentiment Survey revealed that investors are optimistic about the future. Despite high financing costs, limited inventory, and competition from other buyers, 75% of surveyed investors believed conditions would improve or remain stable over the next six months. Check out the full findings here.

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