The 2Q24 Fear and Greed Index is stable at 53 out of 100, up slightly from 52 in 1Q24. Sector scores range from 43 (office) to 58 (multifamily). Index values below 45 indicate a contracting market, while those above 55 suggest expansion. Values between 45 and 55 reflect a market balanced with buyers and sellers.
Key takeaways:
Commercial real estate (CRE) investors believe we’re at a cycle bottom and that asset values have either already bottomed out (38% of survey respondents) or will before the end of 2024 (18%).
Investors expect growth in asset values over the next 6 months in every asset class except office as interest rates come down.
75% of investors report double-digit growth in insurance costs YOY, a headwind to growth in all regions (not just Florida and Texas).
Investors believe the worst is over
Despite recent challenges in commercial real estate (CRE), most investors expect growth in the near future. Over half (56%) expect CRE asset values to bottom out in 2024, while 38% think values have already reached their lowest point....RSK: The only good news for the office sector is growth and absorption went from -9 to -4.
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- - Volume: 24 - WEEK: 40 Date: 10/1/2024 8:52:11 AM -