National + Finance | December 12, 2022

RCLCO's Current Real Estate Market Sentiment Index has reached a new low of 8.3 on a 100-point scale

RCLCO’s Real Estate Sentiment Index Reaches New Low as Recession Looms

The RCLCO Current Real Estate Market Sentiment Index (RMI), measuring sentiment on a 100-point scale, has decreased 26.9 points over the past six months, and more notably has dropped 80.6 points since the most recent peak, ending 2022 at 8.3. This represents a new low for the series as the combination of geopolitical uncertainty, persistent high levels of inflation, and rising interest rates have pushed the economy into a recessionary zone, says Los Angeles-based RCLCO.

Respondents said the real estate market may have hit its low or will in the coming months. The Future RMI is predicted to increase 11.1 points to 19.4 over the next 12 months – yet still is predicted to remain in market distress/recession territory.

Perhaps unsurprisingly, 74% of respondents believe that real estate conditions will get moderately or significantly worse in the next 12 months, although most believe conditions will only be moderately worse.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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