Editor’s note: On a monthly basis, we will be checking in with more than 3,000 of the U.S.’s top residential real estate brokers to gauge their confidence in their own business and the overall market, on a scale from 1 – 10. Additionally, we will ask relevant questions pertaining to the current state of the market to gain more insights on what’s impacting the index score. This report will not only keep real estate professionals up to date on the current conditions of our industry, but it will also serve as a critical indicator of where it’s headed in the coming month, quarter and year.
Despite rising inflation, a flare up in COVID-19 cases and an unprecedented inventory shortage, brokers remain confident in the real estate industry this month, according to RISMedia’s Broker Confidence Index (BCI). January’s index score dipped just a few decimal points to 7.9 versus 8.2 in December 2021.
After polling more than 3,000 residential brokers, we can conclude that despite some mounting concerns, the overall state of confidence remains high during the doldrums of winter. Nearly 20% of respondents scored a maximum confidence of 10/10, and more than 25% were only slightly less confident with a score of 9. In total, nearly 75% of all respondents purported a confidence level of 8 or higher.
In addition to gauging the month’s BCI, we also asked if the recent surge in COVID-19 cases was having an immediate impact on the respondents’ businesses. Slightly more than half (53%) said that it was indeed, which is not surprising given the record-setting number of cases that have been recorded since our last BCI report.
What the brokers are saying:
“I believe the surge of the [Omicron] variant is causing possible sellers (boomers and older) to delay selling. The 65-plus crowd are not moving on to different housing as they normally would. But this first month in 2022 it is a situation of a very serious shortage of inventory. If or when COVID goes away there could be a wave of new inventory.”
– David Winans, Founder, Better Homes and Gardens Real Estate, Winans, Dallas, Texas
“We are seeing less movement on the listing side with sellers holding back on the decision to move; reduced traffic at our open houses; and agents staying away from the office.”
-Robert Baily, Associate Broker, Howard Hanna Real Estate Services, Washington Pennsylvania
“Just as we were seeing more agents return to the office for trainings/events this has shifted more people back home. We are also seeing some buyers delay the near year searches as COVID peaks—particularly in our area. ”
-Kimber Menkiti, President, Menkiti Group, Washington, D.C./Maryland/Virginia
“A large percentage of agents and their families are affected. Agents not working for the last two-three weeks will have an impact on closings 30-45 days forward.”
-Cami Pinsak, Owner/Manager, Realty ONE Group Summit, Camarillo, California
“Our business is very unpredictable.”
-Henry Erwin, Broker Manager/Owner, RE/MAX Excels, Geneva, Illinois
Caysey Welton is RISMedia’s Content Director. Email him your real estate news ideas to cwelton@rismedia.com.
