Residential and commercial broker confidence in current conditions fell for the fifth consecutive quarter as the residential Current Confidence Index (CCI) dipped from -17.41 to -19.43 and the commercial Current Confidence Index declined from -40.58 to -45.61. Rising interest rates, continued inflation, equity market volatility, and recently announced layoffs at some large employers all provided cause for current concerns.
Encouraged by the recent cooling in inflation and mortgage rates, however, residential brokers tended to see a light at the end of the tunnel in 2023. Commercial brokers noted continued strength in retail and hospitality but were less hopeful for rapid improvement in the office sector. During the fourth quarter, the residential expectations index (EXI) increased from -5.46 to 12.85, making it the first time it has been in positive territory since the first quarter of 2022. The commercial EXI also rose (from -22.83 to -20.57) but remained in negative territory.