INCREASING SHARE OF LOCAL COMMUNITY DEVELOPERS BUYING AT AUCTION EXPECT HOME PRICES AND RENTS TO DECLINE IN 2024
40% expect home prices to decline in 2024, up from 32% in 2023 and 17% in 2022
29% expect rents to decline in 2024, up from 16 percent in 2023
49% describe their local real estate market as “overvalued with correction possible”
60% still expect to increase investment property purchases in 2024
Auction.com, the nation’s leading distressed real estate marketplace, released its 2024 Buyer Insights report, which shows that an increasing share of local community developers buying distressed properties at auction expect home prices and rents to decline in their local market.
Forty percent of buyers surveyed said they expect home prices to decline in 2024, up from 32 percent in a 2023 survey and up from 17 percent in a 2022 survey. Buyers in the Southeast were most bearish on home prices (46 percent expecting a decline), and buyers in the West were least bearish (35 percent expecting a decline). Nearly half of buyers (49 percent) described their local market as “overvalued with correction possible.”
Nearly three in 10 buyers surveyed (29 percent) said they expect rents to decrease in the coming year, up from 16 percent of buyers surveyed in 2023. Buyers in the West were most bearish about rents (35 percent expecting a decline), and buyers in the in the Northeast were least bearish (25 percent expecting a decline).
Buyers Still Bullish on Acquisitions
Despite being increasingly bearish on retail home price appreciation and rents, buyers were increasingly bullish on property acquisitions. Sixty percent of buyers surveyed said they expect to increase property purchases in 2024, up from 54 percent who expected to increase property purchases in 2023.
Most buyers aren’t expecting to lower their maximum bids at auction in 2024. More than half (56 percent) plan to keep their maximum bid calculation relative to property value the same while 21 percent said they plan to increase their maximum bid calculation.
The 2024 Buyer Insights Report is based on a January 2024 survey of more than 400 Auction.com buyers from across the country. More than nine in 10 buyers surveyed described themselves as local community developers who purchased fewer than 10 properties in 2023.
Other survey findings in the report:
- 78 percent of buyers describe themselves as local community developers,
- 13 percent describe themselves as owner-occupants
- 96 percent purchased 10 or fewer properties last year
- 97 percent ranked building generation wealth as a top-three motivation for investing
- 63 percent support at least three local jobs annually
- 55 percent renovate and resell to owner-occupants as their primary investing strategy
- 63 percent spend more than $20,000 on rehab and closing costs
- 75 percent said lack of inventory or well-priced inventory is biggest barrier to more purchases
- 76 percent of owner-occupant buyers prefer remote bid or online auctions
- 88 percent of occupied property buyers offer graceful exit to current occupants
To view the full report: https://www.auction.com/lp/in-the-news/2024-buyer-insights-report/
About Auction.com
Auction.com is the nation’s leading online marketplace for the disposition of distressed residential properties. The company goes beyond traditional disposition programs, offering tools and services that stabilize neighborhoods, expand homeownership, maximize sales, shorten the sales cycle, yield higher returns, mitigate risks and elevate results. Our seller strategy includes customized and flexible programs, data intelligence and buyer insights, and pioneering technology. This includes Remote Bid®, which expands the buyer base nationwide by letting buyers bid on and win select foreclosure sales from anywhere, and Portfolio Interact™, featuring Bid Interact™. The national footprint for online and in-person auctions includes all 50 states, as well as Washington, DC, and Puerto Rico. Auction.com is headquartered in Irvine, CA, with offices in key markets nationwide.
Contact
Daren Blomquist
Auction.com
Tel.949.355.3371
Email: dblomquist@auction.com
