Investor Sentiment Hits Record High
Investors felt a renewed sense of optimism in 1Q13, according to the National Real Estate Investor/Marcus & Millichap 2013 Investor Sentiment Survey.
Despite uncertainties over the looming fiscal cliff and sequestration cuts when the survey was conducted in late 2012 and early 2013, investor sentiment reached a record-high 174 points on the index. Strengthening market fundamentals and low interest rates helped to fueled this momentum, said Hessam Nadji, senior vice president and managing director at Marcus & Millichap.
Multifamily was the favored property sector among survey respondents, with the office and industrial sectors predicted to improve in the second half of 2013. Respondents’ confidence in the retail sector remained relatively unchanged while the hospitality sector suffered only a minor decrease on the investor sentiment rating scale.
“This is great news for the industry, and it is even better news for the broader U.S. economy, as we know that the Investor Sentiment Index has proved to be a very accurate foreteller of economic direction,” Nadji said.
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