Real Estate Executives See Softening But Perhaps a New Normal?

Experts say the California housing market can handle a modest increase.

SAN FRANCISCO—Top real estate executives’ confidence in the US economy and housing market for 2017 has softened compared to two years ago, and 42% have grown less confident in the world economy since last January, according to the latest Imprev Thought Leader Real Estate Confidence study. However, 35% say confidence in their own local economy has grown and 26% have more confidence in their own state’s economy. This is especially true of the California economy, which continues to outpace the US economy.

“Real estate leaders are clearly less bullish about the coming year than they were two years ago,” says Renwick Congdon, chief executive officer of Imprev, a provider of real estate automated marketing services. “In fact, confidence for 2017 is lower across nearly all questions related to housing and the economy. When we compare past studies, an interesting trend emerges: executives and broker-owners are less confident in the global economy and far more confident in their local economies at the end of each year than they were at the beginning. In fact, their confidence grows stronger the closer the economy is to home. This year, while only 4% of leaders say their confidence in the world economy has grown this year, 35% say their confidence in their own local economy has grown. While 13% have gained confidence in the US economy, 26% have more confidence in their own state’s economy.”