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CREFC Survey: Market Confidence Reaches New High
The CRE Finance Council (CREFC) Fourth-Quarter 2024 Board of Governors Sentiment Index survey demonstrated continued improvement in market confidence, rising 5% to 126.6 from 121.1 in 3Q24. The current reading is the highest ever recorded for the Index and reflects sustained optimism about market conditions even as expectations adjust to a “higher-for-longer” interest rate environment, according to CREFC.
The 4Q24 Sentiment Index showed optimism continuing to rise, with 42% of respondents expecting improved economic performance over the next 12 months, up from 32% in Q3. Seventy-four percent expect a positive impact on CRE finance-related businesses from government actions, up from 17% last quarter.
The latest survey also showed a significant improvement in the outlook for fundamentals, with 65% expecting improvement (up from 40%) and fewer expecting worsening conditions (12% vs 23%). Overall industry outlook improved, with 77% expressing positive sentiment, up from 57% last quarter, with no negative responses.
Lisa Pendergast, president and CEO of CREFC, said, “Overall, the 4Q24 survey results suggest that the CRE finance industry believes the market is on more solid footing heading into 2025. While concerns about higher-for-longer interest rates persist, our members see stabilizing CRE asset prices, rising transaction volumes and a demand for CRE financing that remains both consistent and resilient.”
- ◦Financing
- ◦Economy
