The real estate sentiment index remained largely unchanged in early 2026, signaling a market that is stabilizing but still searching for clarity. The Real Estate Roundtable reported that its First Quarter 2026 Sentiment Index came in at 66, down just one point from Q4 2025. Respondents described conditions as the early phase of a recovery that remains tentative and uneven. Meanwhile, tariffs and ongoing interest-rate uncertainty continue to widen the gap between buyers and sellers, which slows price discovery and delays transactions.
At the same time, underlying indicators show mixed but improving signals. The Current Conditions Index rose two points to 66, while the Future Expectations Index slipped two points to 67. Together, these readings reflect cautious optimism for better conditions later in 2026, even as volatility persists. Fewer than 10% of respondents said market conditions worsened over the past year. In contrast, 78% reported increased debt availability. However, sentiment around equity availability was more restrained, with 42% of respondents noting improvement, suggesting capital markets are reopening at different speeds.
Industry leadership views this balance as a constructive, though fragile, step forward. Jeffrey DeBoer, president and CEO of the Real Estate Roundtable, said the survey points to a stabilizing market supported by better access to debt and rising confidence about the year ahead. Still, uncertainty continues to hold transaction volume below its potential. According to DeBoer, sustained momentum will depend on a stable policy environment, which helps investors make long-term decisions that support job creation, housing supply and broader economic growth across U.S. communities.
