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arket uncertainty, recession concerns, and the impact of Trump tariffs and mass deportations have dampened investor optimism. Real estate investor sentiment has declined for the second consecutive quarter, falling by nine points from the previous quarter and 12 points from a year ago, with a quarterly score of 88 being the lowest since the RCN Capital/CJ Patrick Company Investor Sentiment Index began in Fall 2023.

    According to the Spring 2025 report, fewer investors view today's market as better or much better than it was a year ago, dropping from 35% to 31%. Conversely, those who feel market conditions have worsened rose from 25% to 34%, with 33% expecting conditions to decline over the next six months. The percentage of investors expecting conditions to worsen is the worst negative score recorded since the beginning of the survey.

    The RCN Capital/CJ Patrick Company Investor Sentiment Index tracks real estate investor sentiment across the country, analyzing responses to four key questions: current market outlook, future market outlook, expected home price increases, and plans to buy properties. The index score dropped from 97 in Winter to 88 in Spring, with three of the four metrics showing quarter-over-quarter declines: views on the current market fell by seven points, outlook for the future market dropped by 10 points, and belief that prices will continue to rise decreased by three points.