Bethesda, Maryland., June 24, 2021 / PRNewswire / – Leading Real Estate Consulting Company RCLCO Releases Results Real estate sentiment overview by mid-2021, which tracks confidence in the US real estate market conditions over the past 10 years. The results reflect strong optimism as the nation reopens:
- The RCLCO Real Estate Market Sentiment Index (RMI), which measures sentiment on a 100-point scale, has risen 57.5 points over the past six months, from 31.6 at the end of 2020 to 89.1 by mid-2021. Co-author says Kelly Mangold“The recovery in sentiment is impressive, to levels not seen since 2015.”
- Respondents predict that real estate market conditions will remain largely unchanged in the near future, with the RMI expected to fall just 7.8 points to 81.3 over the next 12 months. This is still well above the long-term (2011) average (68.8).
- 75% of respondents believe that in the next 12 months the condition of the property will be moderate or significantly better.
- 7 out of 10 respondents indicated that rising construction costs have a significant impact on the market. Higher costs are likely to decrease slightly in the future, but will remain a factor for 12 months.
- Respondents indicate that since the end of 2020 survey, most product types have moved from contraction phases to expansion phases in the real estate cycle. Retail and offices remain at the bottom of the cycle, and the hospitality business has expanded rapidly. However, all three sectors are expected to return to early recovery over the next 12 months.
- Looking ahead, most respondents expect interest rates to rise, capital flows to real estate, and home ownership rates to rise. However, there was less consensus on expected capital rates over the next 12 months.
Read the full report: https://bit.ly/3d6V88v
About RCLCO Real Estate Consulting
Since 1967, RCLCO has been the “first stop” for real estate developers, investors, government agencies and non-real estate companies looking for strategic and tactical advice on real estate investment, planning and development. RCLCO uses quantitative analytics platforms and a strategic planning framework to deliver end-to-end business planning and implementation solutions at the organization, portfolio or project level. RCLCO headquartered in St. Bethesda, Maryland, and has offices in Los Angeles, California, Orlando, Florida, as well as Austin, Texas. Find out more at www.rclco.com