Real estate investor sentiment slumped for a second consecutive quarter and sank to an all-time low index score of 84 on the RCN Capital/CJ Patrick Company Investor Sentiment Index. The new index score was three points lower than the prior quarter and dropped by 18 points year-over-year.
The decline was mostly attributed to the negative view by investors of current market conditions. Only 26% of investors believed market conditions are better than they were a year ago, down from 35% in the previous quarter to the lowest share on record. Those who viewed the market today as being worse rose from 36% to 45%, the highest percentage in the survey’s history.
However, 34% of the investors believed that conditions will improve over the next six months, up from 32% in the previous survey, while the number expecting conditions to worsen fell from 32% to 27%.
Furthermore, almost 55% of respondents claimed the high cost of financing was one of the biggest problems in today’s market, while almost three-quarters of the investors surveyed (73%) did not foresee relief happening anytime soon, with the belief that interest rates will either stay where they are today or increase between now and the end of the year.
Insurance costs and limited availability were also an ongoing concern, with nearly 71% of the respondents complaining that insurance issues were a factor in their investment decision-making, and 50% lamenting that insurance-related factors had caused them to miss out on a deal.
“Real estate investor sentiment appears to be impacting investor purchase activity,” said Rick Sharga, CEO of CJ Patrick Company. “Real estate investors purchased 23% fewer homes in the first quarter of 2026 than they did in the previous quarter and in the first quarter of 2025. The survey also shows that 32% of the respondents don’t plan to buy any properties at all this year, and only 9% plan to buy more than they did a year ago.”
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