90 90
INVESTMENT GOVERNMENT PROPERTY PRESERVATION
MORE THAN HALF
OF INVESTORS
BELIEVE THE
HOUSING MARKET
IS OVERVALUED
Up from 40% a year ago, 55% of real
estate investors feel that their local market is
overvalued and expect to see a price correction
in the coming months.
According to Auction.com, an online
distressed real estate marketplace, a March
2022 survey of confirmed buyers who used
their platform in the last three years also found
that 17% of buyers predict flat or declining
home prices in their home market in 2022, up
12% year over year.
"While most real estate investors on the
frontlines of the housing market believe their
local market is ripe for a correction, more than
eight in 10 don't think that correction will
happen in 2022," said Daren Blomquist, VP
of Market Economics at Auction.com. "Most
of our buyers are local community developers
buying and renovating distressed homes
that they will resell to retail buyers six to 12
months in the future. is strategy keeps them
constantly vigilant about the future market
conditions into which they will be reselling
their renovated homes."
"Small investors are particularly active at
these auctions, and they are sort of the single
largest buying group," said Laurie Goodman,
Institute Fellow at the Urban Institute.
"e thing that I thought was really, really
interesting was that a lot of these mom-
and-pop investors buy these properties with
the intent to fix them up and flip to owner-
occupants down the line."
Breaking down the data a bit more, 61% of
respondents identified themselves as flippers,
up from 57% a year earlier. A further 72% of
respondents indicated that they believe their
investments improve neighborhoods.
"Auction.com buyers confirmed that along
with performance, social responsibility is also
a critical part of their business," said Jason
Allnutt, CEO of Auction.com. "For most of
our local community developers, who dominate
the Auction.com platform, that means
reselling to owner-occupants and improving
neighborhoods with quality renovations. For
sellers, it means auction buyers are helping
with better disposition outcomes by taking
inventory and turning it into affordably priced
housing."
Other high-level findings from the report:
» 56% of respondents ranked online auctions
or remote bid as top acquisition method
» 92% spend more than $10,000 on
renovations
» 86% expect acquisitions to increase or
remain the same in 2022
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