The Real Deal New York

Broker confidence dips slightly in first quarter: REBNY

Potential for rising interest rates is creating some concern
April 28, 2015 06:00PM

New York City brokers’ confidence remained high but fell slightly in the first quarter of 2015, driven by the potential impact of rising interest rates and low inventory, according to the latest Real Estate Board of New York confidence index report.

Overall broker confidence was at 9.05, compared with 9.22 in the fourth quarter of 2014 and 8.80 in the third quarter.

“Brokers are showing bullish confidence in this healthy market and continue to be positive about the robust sales and leasing activity throughout the city,” said Steven Spinola, president of REBNY.

“Despite concern about future financing six months from now, they are still very optimistic about the market and show no indications that a rise in interest rates would have any serious adverse impact.”

Commercial broker confidence was down to 9.24, compared to 9.6 and 9.38 in the previous two quarters. While they expressed confidence in the sales, finance, and leasing markets, they were skittish about the possibility of the Federal Reserve raising interest rates due to the improving economy. Attitudes were particularly positive about the Financial District and Chelsea markets.

Residential broker confidence remained flat at 8.86, with very little movement from last quarter’s 8.85, but improved from the third quarter’s 8.23. Brokers were positive about the growing popularity of neighborhoods including Riverdale in the Bronx and Crown Heights, Park Slope, Fort Greene, Boerum Hill and Carroll Gardens in Brooklyn, but were concerned about lack of inventory and rising interest rates. — Tess Hofmann