Investor optimism hit an annual low in August, and has steadily declined since January, according to the latest UBS/Gallup index, released today.

The Index of Investor Optimism dropped two points since July to 53 in August, and has fallen 40 points since January. The index is based on a monthly survey and had a baseline score of 124 when it was established in October 1996.

“One key issue of growing concern to investors is the residential real estate market,” UBS announced today. About 44 percent of respondents rate conditions in the real estate market as “only fair,” and 12 percent rated real estate conditions as “poor,” up from a combined 46 percent who rated the market as “only fair” or “poor” in June and July.

About 70 percent of investors believe that conditions in the real estate market are getting worse, up from 63 percent in June, the survey also found. Investor sentiment toward investing in real estate assets nationwide has also fallen. In August, 50 percent of investors said that now is a good time to invest in real estate related assets nationwide, down from 55 percent in June.

“The drop in confidence in the real estate market reflects the economic data for that sector and suggests that investors are feeling the pinch in their local markets,” said Anne Briglia, senior fixed income strategist for UBS Wealth Management Research, in a statement. “Although we have seen gasoline prices stabilize recently, investors are clearly worried about the implications of international tensions on future energy prices.”

About 94 percent of investors polled said they view energy prices as harmful to the investment climate. Respondents also stated that they believe gasoline prices will continue to rise somewhat over the next three months. About 85 percent of respondents said they believe current international tensions are hurting the investment climate, while 75 percent are concerned about the Federal budget deficit and 72 percent worry about the danger of increased inflation.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Hear from Realogy, Pacaso, SERHANT., Spotify, Redfin, Douglas Elliman, and 100+ more leaders at ICNY.Register now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription