New York’s real estate brokers seem to be losing faith.
In a new Real Estate Board of New York survey, the city’s brokers said they are less confident in the housing market than they were three months ago, according to Capital NY. Tight credit and a lack of inventory for middle-income buyers are influencing the brokers’ negative outlook, according to the website.
The broker confidence index dropped to 8.80 at the end of September from 8.88 in the second quarter. Brokers are still more confident than they were a year ago during the same period, when the score was 8.75.
“The broker confidence index still remains high and above levels seen in 2013, despite some concerns,” REBNY president Steven Spinola said in a statement, according to the website. “Brokers are maintaining an optimistic outlook thanks to the volume of economic and investment activity, job growth and new construction.”
Much of that new construction, however, is far more expensive than most buyers can afford, brokers wrote in the survey.
The residential market confidence index dropped to 8.23 from 8.30 between the second and the third quarter.
Meanwhile, the commercial broker confidence index dropped to 9.38 from 9.45 from the second to the third quarter. The commercial brokers, however, are optimistic overall due to a boost to the office market from technology, advertising, media and information companies, as well as continued job growth and leasing activity in Midtown South. [Capital NY] — Claire Moses