Every month a report is being presented by Point2 technologies that bring forward the RECI (real estate confidence index) which reflects the confidence of the commercial and residential real estate brokers and agents in the real estate market of United States. The team doing surveys regularly tracks real estate professionals forward looking sentiments on monthly basic. The index scales 1 as bad and 10 as good. During the month of February the Real Estate Confidence Index was down by 2.26 percent to 5.63 percent.

There are a lot of reasons why the real estate brokers and agents are loosing confidence in the real estate market of U.S. One major reason is the unemployment rate in United States. However, the unemployment rate in January declined to 9.7 percent but still this rate is considered high by the economists as United States is one of the biggest economies of the world. Due to unemployment in the economy the purchasing power of the people has declined and the real estate agents and brokers feel reluctant to lend their properties as they think they won’t be able to get their payments on time. The next think which discourages the real estate brokers and agents and makes them lose their confidence in the U.S real estate market is the federal tax incentives to the consumers. The tax credit to the buyers will not be available after the month of April. The tax credit by the government has boosted the sale of properties but the real estate agents view that the end of this tax incentive will affect the buying behavior of the consumers and the real estate brokers and agents will face tough situations.

The government also announced to end the campaign which kept the mortgage rates artificially low. This will also pull the buyers from making purchases and eventually the effect will be on the real estate brokers. However, the commercial property sector and the residential property sector both are showing improvement in them but the interest of the brokers and agents is declining as they think the situation is getting tougher and the competition is high.