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Broker Confidence Index Second Quarter 2014
July 31, 2014
The Real Estate Board of New York’s Real Estate Broker Confidence Index for the second quarter of 2014 showed that broker’s confidence decreased slightly compared to last quarter, from 9.21 to 8.88. This slight dip was the result of their lower confidence in the real estate market in the future, six months from now. Despite this dip, the Real Estate Broker Confidence Index is virtually unchanged compared to the same period last year.
The Residential Broker Confidence Index decreased slightly in the second quarter of 2014 to 8.3 compared to 8.8 last quarter. Though the residential brokers continue to express confidence in the market, the lack of inventory in general and the lack of product for mid-market buyers in particular is tempering their confidence in the present market and the market in the future, six months from now. In addition to concerns about inventory, residential brokers are slightly less confident in financing for sales compared to last quarter. Nevertheless, rising prices and increased sales, as reported in REBNY’s New York City Residential Sales Report, Second Quarter 2014, provide sound reasons for the residential broker’s confidence in the market.
The Commercial Broker Confidence Index was 9.62 this quarter, down from 9.45 in the last quarter. This modest decline was due primarily by a lessening in confidence in the market in the future, six months from now. Commercial broker’s confidence in the present market and the availability of financing has been unwavering in the last two quarters. Also, broker confidence in the retail leasing market appears stronger than the office market. However, there appears to be a hint of concern that the availability of financing for sales may push up sale prices. Nevertheless, the growth in tourism, jobs and the continuing improvement in the local and national economy is bolstering the commercial real estate market.