NYC broker confidence dips slightly in Q2

Concerns over interest rates and inventory are to blame

New York /
Jul.July 31, 2015 08:00 AM

New York City brokers’ confidence dropped ever-so-slightly in the second quarter of 2015, though attitudes have largely remained on an even keel for the past two years, according to the Real Estate Board of New York’s latest broker confidence report.

The small dip was attributed to concerns over interest rates, especially among residential brokers, as well as lack of inventory. The overall measure for Q2 was 8.84, down from 9.05 in the year’s first quarter, though unchanged from one year ago.

“Our survey found that brokers are slightly less confident in the market six months from now, which is largely due to interest rates,” said John Banks, president of REBNY. “This seems to be a more significant concern for the residential brokers whose activity is more directly impacted by changes in rates.”

On the commercial side, broker confidence was at 9.47, slightly up from last quarter’s 9.24. Brokers said that employment growth was the main reason for their sunny outlook.

“Job growth continues to be the most significant driver of future market performance. [The] market is ‘cooling’ a bit, but there is still velocity (and urgency),” said one broker.

The residential broker confidence index decreased to 8.21 from 8.86 last quarter. Brokers cited low inventory, especially of two-bedroom apartments, as an ongoing source of worry. Concern over interest rates also led brokers to feel uncertain about the market six months from now.

However, brokers were optimistic about robust sales volume and increased demand, especially in Brooklyn and Queens. — Tess Hofmann


Related Articles

arrow_forward_ios
John Banks
High expectations: A look at John Banks’ 4 years at REBNY
High expectations: A look at John Banks’ 4 years at REBNY
John Banks
John Banks to step down as REBNY president
John Banks to step down as REBNY president
REBNY Awards
Newmark Knight Frank wins REBNY retail award for Alamo Drafthouse deal in FiDi
Newmark Knight Frank wins REBNY retail award for Alamo Drafthouse deal in FiDi
Gov. Andrew Cuomo, Andrea Stewart-Cousins and Carl Heastie (Getty; iStock/Illustration by Kevin Rebong for The Real Deal)
Landlords’ building emissions workaround is dead
Landlords’ building emissions workaround is dead
From left: Assembly member Harvey Epstein, State Sen. Julia Salazar,  MBA's Mike Flood and REBNY's James Whelan (Getty, Anuja Shakya/Whelan, MBA/Flood)
Real estate makes last-minute push to kill proposed preferred equity tax
Real estate makes last-minute push to kill proposed preferred equity tax
Compass' Robert Reffkin and REBNY's James Whelan. (Getty, Whelan ph: Anuja Shakya)
Compass slams REBNY with antitrust suit
Compass slams REBNY with antitrust suit
(iStock)
Broker confidence rebounds after challenging year: REBNY
Broker confidence rebounds after challenging year: REBNY
Legal Aid’s Judith Goldiner and REBNY’s James Whelan have teamed up. (Getty, REBNY, Legal Aid)
REBNY, Legal Aid team up to push for more rental assistance
REBNY, Legal Aid team up to push for more rental assistance
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...