NEW YORK CITY—The Real Estate Board of New York reports that its gauge of the health of the city's real estate market indicates that the confidence of New York City real estate brokers remains high.
REBNY released its Broker Confidence Index on Monday that indicated brokers' confidence was stable in the third quarter of this year. The Broker Confidence Index rose from 8.75 in the third quarter of 2013 to 8.80 this past quarter. However broker confidence declined marginally over the second quarter of 2014 from 8.88.
REBNY officials state that survey respondents expressed concerns over the continued lack of inventory in the residential market and the impact on leasing activity between commercial sub-markets with the emergence of the technology, advertising, media, and information sector. Brokers were encouraged by the popularity of new outer-borough residential neighborhoods, leasing activity in Midtown South, and growth of the TAMI sector in New York City.
“The Broker Confidence Index still remains high and above levels seen in 2013, despite some concerns” says REBNY president Steven Spinola. “Brokers are maintaining an optimistic outlook thanks to the volume of economic and investment activity, job growth, and new construction.”
The Residential Real Estate Market Confidence Index in the third quarter of 2014 was 8.23, a decrease from last year's index of 8.30. Residential brokers say the lack of inventory, specifically for middle-income housing, and the proposed tax on pied-à-terres as concerns.
The Commercial Real Estate Market Overall Confidence Index in the third quarter of 2014 was 9.38, a small decline from 9.45 last quarter. Commercial brokers noted that growth in the TAMI sector and activity in Midtown South have continued to create strong demand and diminishing supply.
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