Respondents to RCLCO’s latest Market Sentiment Survey indicated that they believe that most product types remain in the stable phase of the real estate cycle. For-sale residential properties are expected to be stable, but down from their peak.
Also, 38 percent of respondents predict an apartment downturn by the middle of next year. Bubble concerns are highest in Southwest and Southeast markets, along with Washington D.C.
This cooling moderation of pessimism is reflected in the share of respondents reporting a moderate or significant apartment bubble risk in their market, with 61% indicating some risk. This is down four percentage points from six months ago and is effectively the same as conditions reported a year ago.