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The Real Estate Board of New York’s latest Broker Confidence Index reveals that brokers’ confidence in the market has taken a slight dip, but overall, they’re still optimistic.
The Overall Broker Confidence Index for the second quarter of 2015 was 8.84, a slight drop from last quarter’s 9.05 and on par year-over-year.
REBNY President John Banks explained the reason for the dip.
“Our survey found that brokers are slightly less confident in the market six months from now, which is largely due to interest rates. This seems to be a more significant concern for the residential brokers whose activity is more directly impacted by changes in rates,” he said.
Indeed, the Residential Broker Confidence Index decreased to 8.21 from 8.86 last quarter, with many brokers citing lack of inventory as a cause for concern.
On the other hand, the Commercial Broker Confidence Index was 9.47, a slight increase from last quarter’s 9.24. Commercial brokers credited employment growth as a factor in their increased confidence in the market.
REBNY’s Broker Confidence Index is a collection of responses from an online survey given to REBNY’s residential and commercial brokerage division members. Questions and full-text responses are accessible in the full version of the report.
REBNY’s recent second quarter report was overwhelmingly positive, showing total consideration — which includes co-ops, condos and one-to-three-family dwellings — at $10.4 billion, up 17 percent from the same period in 2014.
And remember that you can always check BuzzBuzzHome’s Market Snapshot tool for the latest data on new construction in New York.