“It is and it is not contradictory,” Minard said of the differing view on the local and national economies. “I think it is best explained by what I have been hearing from many business leaders for the past year. I am continually hearing how business leaders are concerned about various data points related to the economy, employment, and money and how all the data they are seeing should be bad for business but, despite those things, their businesses are still growing and still making more money. Historically, for example, when inflation was so high businesses would be slowing down, but they haven’t, or they haven’t at drastic rates of decline. I think this comes down to one’s person purview versus the overall domestic and global data that should be concerning – but those concerns aren’t playing out in declining business and profits.”
Few remain bullish on economy
The independent study found only 4% of real estate brokerage leaders believe the global economy will improve in 2023. However, many leaders are more bullish on their local economies, as 28% of real estate brokerage leaders believe their local economy will improve, and 25% believe their state economy will improve over the next 12 months.
“It’s important to note not a single real estate brokerage leader of the more than 100 professionals surveyed believes the global, US, state, or local economy will ‘improve significantly’ in 2023,” Minard added.
The survey also revealed real estate brokerage leaders were split on what they believe will happen to housing demand in their local markets in 2023. About one-third say it will improve, one-third say it will stay the same, and one-third believe it will deteriorate. Only 3% of those surveyed believe their local housing market will decline significantly in 2023.
Moreover, the survey gauged the confidence level of real estate brokerage leaders today compared to 12 months ago. The survey shows two in three leaders are less confident than a year ago in the global and US economies. In addition, about one in three are less optimistic about their state and local economies. But, overall, most real estate leaders (59%) have unchanged confidence in their state and local economies.