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REBNY Broker Confidence Index 2Q-2016

REBNY REAL ESTATE BROKER CONFIDENCE INDEX FIRST QUARTER 2016


The Real Estate Board of New York’s Real Estate Broker Confidence Index for the second quarter of 2016 was 7.04, a .19 drop from the first quarter of 2016. There has been a slow, steady decline in overall broker confidence in the market since the fourth quarter of 2014 when it was 9.22.

Similarly, the overall broker confidence index for the market six months from now was 6.47, dipping .26 points from last quarter.

This index has also continued to decline from the fourth quarter of 2014 when it was 9.23, the highest it had been since we began surveying our brokers. Nevertheless, despite this trend, residential and commercial brokers remain cautiously optimistic and positive overall.

The drop in overall broker confidence in the current market and the market six months from now was driven primarily by the commercial broker index. Though the residential broker index is higher than the commercial index for this quarter, the general downward trend of the commercial index since the second quarter in 2015 has contributed to the overall decline of broker confidence.

The Commercial Broker Confidence Index was 6.57, an increase from last quarter’s 6.36. This marks the first increase in commercial broker confidence since the second quarter in 2015. Similarly, the Commercial Broker Confidence Index for expectations of the market six months from now was 5.71, up 0.16 from last quarter. Concerns about our country’s political future and instability in China and Europe, have continued to influence the outlook of the commercial brokers.

Some brokers voiced their concerns sensing a slowdown in the retail market due to the industry’s transition to mixed-use and online shopping. Others also felt that government regulations were affecting banks’ abilities to finance transactions.

Despite the slowdown in retail leasing activity, there was still a fair amount of tech office leasing activity this quarter. Residential Broker Confidence Index was slightly lower than last quarter with confidence decreasing to 7.52, down 0.58 from last quarter. Rising interest rates and the lack of sales inventory continue to be ongoing concerns among residential brokers in the current market and the market six months from now. Some brokers mentioned that domestic buyers are delaying on purchases because they anticipate the prices will drop.

Foreign buyers have also grown more cautious due to Brexit and other global economic turmoil. Residential broker confidence in the market six months from now dropped back down to 7.23 from 7.92 last quarter. Some brokers remain positive because the current lack of sales inventory creates more competition.

Uncertainty over interest rates and the Presidential election left many residential brokers unsure of what market conditions will be like six months from now.

THE REAL ESTATE BOARD OF NEW YORK BROKER CONFIDENCE INDEX SECOND QUARTER 2016

4 comments:

  1. You posted on Twitter that this blog contained a story via Zest Radio Show! I don't see a reference to Zest Radio Show anywhere! Why you making this stuff up and tagging me with falsehoods? Please explain yourself! Your spam is NOT appreciated!

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  2. Perhaps you should learn how to read and to link to an article before leaving anonymous accusatory comments. In the future I will not include any articles from Zest Radio show on my award winning
    BLOG ESTATE DAILY
    Aug 17th 2016 Edition
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    1. I did not see nor do I see the link you provided in this blog link here. How come I can't find it? I use an iPod mini. Maybe your web blog doesn't show full content for mobile devices. My apologies to you, but, I can't see the link on your blog here that I can see. I don't know why my google account shows unknown, but I assure you, I am the one that wrote the original response you responded to. Maybe, you can advise me of my mobile technology is missing something that I couldn't find when I visited this link you provided in your tweet to @zestradioshow

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  3. It shows up on my iPhone and iPad. I don't know why you can't find it. The format is different on mobile devices. The article is under Art & Entertainment. On the top right it says more. A drop down menu shows Art & entertainment on my iPhone. I'm not a technology expert. The article was shared via twitter accounts I follow on August 17th. Sorry for any inconvenience.

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