The luxury goods company began collecting the monthly index in March 2023, which is based on approximately 250 responses collected monthly by the company’s real estate professionals in the United States, Canada, the Caribbean and Mexico.
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Luxury goods company Engel & Völkers Americas announced Thursday it has launched a new monthly market sentiment index based on data from real estate professionals within the Engel & Völkers Americas network across the United States, Canada, the Caribbean and Mexico.
The Engel & Völkers Real Estate Sentiment (EVRES) Index will provide a monthly score of market sentiment on a scale of 0-100, which will help support the company’s strategy in the Americas. The company’s real estate professionals collect approximately 250 responses each month.
Engel & Völkers first started collecting data for the index in March 2023, but it is now being released publicly for the first time.
Andrew Dinsmore | Image Source: LinkedIn
“The Engel & Völkers Real Estate Sentiment Index was launched to gain a clear understanding of how our network of real estate professionals view the market to help us develop planning options, resources and forecasts,” said Andrew Dinsmore, Chief Financial Officer, Americas, Engel & Völkers, in a said in a statement.
“We are pleased to share the results publicly with the larger industry for the first time, as our data and analytics teams have been able to leverage the EVRES Index to predict market activity and identify key trends shaping the industry.”
According to Engel & Völkers, the EVRES Index calculated a sentiment score of 64 for the residential real estate market in the Americas in April. Annual sentiment is essentially flat compared with the 67 score the company recorded in April 2023. 47 points.
Engel & Völkers noted that the index has been changing in recent months as buyers gain more confidence and adapt to changes in the market as the traditional spring buying season approaches. Still, while buyer confidence and indices have been on a positive trajectory, inventory, affordability and market uncertainty remain challenges.
“There is optimism throughout the real estate industry in 2024 as more buyers plan to enter the market,” Dinsmore continued. “April’s results suggest that the positive sentiment at the start of the year has stabilized. Currently, we are seeing growing consumer hesitancy due to concerns about rising mortgage rates, limited inventory, and economic uncertainty.
Sentiment was most upbeat in the South and Southwest, which the luxury goods company attributed to increased inventory and an increase in the number of high-net-worth buyers. Particularly in the South West, positive sentiment increased for affordable properties and new construction.
Market sentiment in the Northeast and Northwest regions of the United States fell the most, with sentiment in each region falling 13.5% and 14.1% respectively from the previous quarter due to high demand, low inventory and high mortgage rates.
Canada remains a bright spot in the index as activity in the country’s east has grown since January and buyers are more optimistic as the Bank of Canada is expected to cut interest rates within the next month. In Western Canada, seller confidence also drove optimism in the market, with a sentiment score of 70.8.
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