The cloud of uncertainty surrounding real estate broker confidence in the New York City real estate market is starting to clear up.
The Real Estate Board of New York’s (REBNY) Broker Confidence Index in the fourth quarter of 2016 recorded the first increase since the fourth quarter of 2014 when the index was 9.22.
Quarter-over-quarter, the Broker Confidence Index rose by 0.21 to 6.0 in the third quarter of 2016 from 5.79 in the fourth quarter of 2016, which marks a positive shift in overall broker outlook in both the present situation and future real estate market.
The Future Real Estate Broker Confidence Index, which measures broker confidence in the market six months from now, swung upward quarter-over-quarter to 5.97 in the fourth quarter of 2016 from 5.29 last quarter. The Commercial Broker Future Confidence Index rose to 5.39 from 4.32, while the Residential Index rose to 6.54 from 6.26.
“Confidence among our brokers is on the rise after being strained with uncertainty throughout the last election cycle,” said John Banks, REBNY President.
“Stronger prospects for the future were expressed by both residential and commercial brokers despite their continued unease over financing, interest rates, and other shifting market conditions.”
Commercial brokers are more confident in the market now and in the future than they were last quarter. The Commercial Broker Confidence Index posted a 0.64 increase, rising to 5.85 in the fourth quarter of 2016 from 5.21 in the third quarter of 2016. Concerns about our country’s political future and central bank movements have continued to influence the outlook of commercial brokers. Some voiced unease about the availability of financing and rising interest rates.
Retail brokers expressed a positive outlook. “Retail leasing is on hold for now, but should improve after retailers assess the actual direction of the new administration,” one commercial broker predicted.