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4th Quarter 2014 Broker Confidence Index
February 10, 2015
The Real Estate Board of New York’s Real Estate Broker Confidence Index for the fourth quarter of 2014 increased to 9.22, the highest level of confidence reported since the survey has been issued. Confidence is up across the board, including confidence from both commercial and residential brokers. Their expectation for the market for the near future (six months from now) is also up. Brokers generally reported that the reason behind their confidence was a steady rise in prices in the residential and commercial market, sales and rental, indicating a strong, active, stable market.
The Commercial Broker Confidence Index was at a 9.6, up from 9.38 last quarter. Brokers commented on rising rental and sales prices and on the popularity of Lower Manhattan for commercial tenants, specifically within the TAMI sector (Technology, Advertising, Media and Information). Concern was raised over the pace of increasing rents- if they rise too fast, brokers fear it may slow down the market.
The Residential Broker Confidence Index increased from 8.23 to 8.85 this quarter. This increase in confidence is attributed to the steady rise in pricing—sales and rental—and the continued level of sustainable activity. However, the survey indicates that residential broker’s confidence in the residential rental market is more tempered than the sales market. Residential brokers have again identified the lack of inventory as the major issue for the quarter, as has been the case for the past year. This inventory issue appears to be a concern for sales and rentals. At the same time, brokers do report seeing a lot of new development, but mention the need for more affordable housing as most of the new developments are luxury condos. More rental housing construction would be good for our city.