M
arket sentiment took a dip in February, according to brokers surveyed by The Real Brokerage. Their Transaction Growth Index, a gauge of year-over-year home sales activity, slipped from 51.3 in January to 49.1. In the U.S., the index fell to 49.4, down from 50.2 the previous month. When this metric drops below 50, Real Brokerage considers the market to be contracting.

    Tamir Poleg, chairman and CEO of The Real Brokerage, notes that while buyers now have more options due to higher inventory levels, affordability remains a major obstacle. Despite a slight softening in the Transaction Growth Index, the overall market appears to be stabilizing.

    The Agent Optimism Index, which gauges brokers' expectations for the next 12 months, also declined, dipping from 74 in January to 70.4. While nearly half of respondents (48%) expressed greater optimism about their local markets compared to January, a significant minority remained neutral or pessimistic.