Residential rental and office leasing market conditions raised concern among New York City real estate brokers in the first quarter of 2017 placing pressure on the Real Estate Board of New York’s (REBNY) Broker Confidence Index.
Following a boost posted in the fourth quarter of 2016—the first rise in two years—the Real Estate Broker Confidence Index, which measures overall broker outlook in both the present situation and future real estate market, declined by 0.13 to 5.87 in the first quarter of 2017. This shift was driven by brokers’ confidence in the future real estate market six months from now, which, as measured by the Real Estate Broker Future Confidence Index, pivoted downwards declining 0.27 to 5.7 quarter-over-quarter.
“Our residential and commercial brokers stepped into the first quarter of 2017 with greater confidence, but are proceeding with cautious optimism,” said REBNY President John Banks. “Overall real estate activity in New York City continues at a healthy pace as the market adjusts to the anticipated impact of new inventory.”
The Commercial Broker Confidence Index was 5.28, a decrease of 0.57 from the fourth quarter of 2016. Although confidence in commissions and overall market fundamentals remained high, concerns about the market six months from now placed weight on the index. The Commercial Broker Future Confidence Index decreased 0.46 quarter-over-quarter to 4.93.