Although residential and commercial broker confidence in current conditions fell for the fifth consecutive quarter, residential brokers’ six-month outlook entered positive territory for the first time since the first quarter of 2022, the Real Estate Board of New York reported in its latest Real Estate Broker Confidence Index. The quarterly index surveys commercial and residential brokers across the five boroughs. 

Commercial real estate brokers remained more pessimistic than their residential colleagues, said REBNY. The Commercial Current Confidence Index shifted from -40.58 to -45.61 in Q4 2022. While retail and hospitality capped off an impressive 2022 recovery with a strong holiday season, weak demand for Class B and C office space continues to dampen current broker confidence. 

“High interest rates and inflation underlie ongoing broker malaise, but residential brokers were encouraged by recent signs of moderation in these key indicators” said REBNY director of market data Keith DeCoster. “Residential broker confidence could see further improvement in 2023, if the moderation persists in mortgage and inflation rates. Substantive and widespread momentum in office leasing, and clarity regarding conversion guidelines, will be needed for commercial confidence to turn around.”