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.”
Ture. Take it from a real estate broker here in So Cal. The sad part is that Trump as had his man in the Fed now for 2 months and nothing has changed with interest rates except that they have gone UP!. Remember how Trump would bag on “To Late” Power and now you don’t hear a peep from him on this issue. Sad because he bragged about us being in the “golden age” and in the real estate industry there is nothing golden about it. Very disappointed in him. If we just got a quarter point drop in the rates that would be a big boost of optimism for the industry. Trump’s silence on this issue now says alot to me about him. Disappointing for sure.