At the end of 2024, we surveyed our investor database to learn what the overall results were for the year. Here’s what we found:
Property Purchases
First, we asked respondents if they purchased a property in 2024.
61.6% of respondents said yes, while 38.4% said no – a notable difference.
We dug in a bit deeper and asked the investors why they did or did not purchase a property.
Of those who did buy a property, an overwhelming majority said it was due to finding a great deal. Other answers were because of seller financing, and because the investor had excess cash and needed to use it.
We also gave respondents two other options for this question, neither of which was selected by any of the polled investors. One was to supply their own reason. The other unselected answer was because they had a 1031 exchange and had to buy.
The results for those who did not purchase a property were equally interesting.
About half of the investors who had not purchased property this year said it was because they were waiting for property values to fall. The other common answer was concern about the interest rate and election. We also gave respondents two response choices additional choices on this question, lending standards that were too tight or barely being able to cover the debt service on properties already owned, but neither was selected.
Of the respondents who selected other, supplied reasons included needing to put a pause on their business and divesting for retirement or portfolio simplification.
Property Sales
Next, we asked respondents if they sold a property during 2024.
It was a dead-even split: 50% of respondents had sold a property, and 50% had not.
For those who had sold a property, we asked why:
We supplied 4 possible answers in addition to the “other” option for respondents to supply their own. 22.2% of respondents said they had sold a property because they received a ridiculous offer that they just couldn’t refuse. No respondents selected the options for finding a replacement property for a 1031, divesting to put everything in crypto, or being unable to get decent terms to replace their low interest rate as their rate was coming due.
Most of the investors who responded to this question used the “other” option and supplied their own reason for selling. Some of the responses included underperforming assets, family pressure, divesting, aging out, and high property values.
In Summary
Overall, the results were interesting and less varied than we had expected. It seems the overall consensus of 2024 was that property values were high, but deals could still be found and investors were still aggressive in their offers. Additionally, concerns about the political and economic climates cooled the market considerably. Interestingly, many respondents referenced aging out of investing and/or divesting as they approach retirement – meaning there is plenty of opportunity for new investors seeking to get started.
Thank you to all of the investors who participated in our year-end survey!
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