A new report finds that more than half of real estate brokerage leaders expect the economy to worsen in 2023.

More than 100 brokerage leaders took part in the Delta Real Estate Leadership Survey, which covers firms responsible for more than 60% of last year’s total transactions.

Globally, over 61% anticipate a decline in the economy in 2023, compared with 51% for the US economy.

Michael Minard, CEO and owner of Delta Media Group, attributed respondents’ pessimism to future uncertainties and the fact that many salespeople haven’t experienced a market like this before. Moreover, most businesses have grown top-line revenue for the past two years, but bottom-line revenue has not increased at the same pace.

A study by an independent organization found that only 4% of real estate brokerage leaders expect the global economy to improve by 2023. The majority of brokerage leaders, however, are more optimistic about the economy in their local area, with 28% predicting that their local economy will improve over the next 12 months, and 25% predicting the state economy will improve.

According to the survey, real estate brokerage leaders differed in their predictions for housing demand in 2023. Approximately one-third predict it will improve, one-third predict it will remain the same, and one-third predict it will deteriorate. Only 3% of respondents believe that the local housing market will decline significantly this year.

Additionally, the survey assessed whether brokerage leaders are more confident today than they were 12 months ago. Two out of three leaders are less confident in the global and US economies than a year ago, according to the survey. Additionally, about one-third of state and local residents are less optimistic. Still, most real estate leaders (59%) are confident that their states and local economies will continue to grow.

Over half (53%) of brokerage leaders see their profitability dropping this year, as well as their total transactions decreasing from 2022.

Interestingly, 56% of real estate brokerage leaders believe their company’s local market share will increase in 2023, despite many believing their profitability and transaction count will decline according to Minard. Despite the market chaos, he added that they see opportunities in it.