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3rd Quarter 2014 Broker Confidence Index
October 27, 2014
The Real Estate Board of New York’s Real Estate Broker Confidence Index for the third quarter of 2014 showed that broker’s confidence decreased slightly compared to last quarter from 8.88 to 8.80. Both residential and commercial brokers’ confidence marginally decreased, with commercial brokers’ confidence slightly higher than residential brokers. This has been the case since the first quarter of 2013. Although confidence levels have not dropped below 8.80 in 2014, confidence in the market has slipped since the beginning of 2014, decreasing in both confidence in the current market and confidence in how well the market will do in the near future.
The Residential Broker Confidence Index decreased from 8.30 to 8.23 this quarter, and is the same as it was one year ago in the third quarter of 2013. Residential brokers have identified the lack of inventory as a major issue in each survey for the past year, and this quarter was no different. Brokers mentioned seeing an abundance of new ultra high end developments going up around Manhattan, but that the real need is for middle-income housing throughout the City. The popularity of new neighborhoods in the outer boroughs was a positive factor in the market for our residential brokers.
The Commercial Broker Confidence Index was 9.38 this quarter, down from 9.45 in the last quarter. Commercial confidence levels have been high since the survey began, never dropping below 9.0 since the first quarter of 2013. Commercial broker comments and concerns about the market were more varied than the residential brokers. For Commercial brokers a growing tech sector is a positive sign for the office market, creating strong demand and diminishing supply. Commercial brokers are confident as a result of the increased leasing activity in Midtown South.