Latest confidence index shows weakening sentiment
Real estate brokers in New York are concerned about future leasing and financing conditions and it’s weighing on overall confidence.
The Real Estate Board of New York says that its quarterly Real Estate Broker Confidence Index declined 1.2 points in the first quarter of 2018 compared to the fourth quarter of 2017.
The decline to 5.78 out of 10 was despite several brokers noting that interest rates are still below historic averages even after recent increases.
“Residential and commercial broker confidence was decidedly more upbeat in the fourth quarter of 2017, but market confidence in the first quarter of 2018 remained positive overall,” said John H. Banks, REBNY President. “Though the pace of transactions has slowed, REBNY brokers are seeing movement among well-priced inventory. Prices are continuing to undergo a natural correction with new developments and a more competitive leasing environment.”
The residential brokers’ index was 5.54, a decrease of 1.03; while the commercial index was 6.02, a decrease of 1.39.
REBNY regularly surveys its residential and commercial brokerage division members to measure their confidence in the New York City real estate market now and six months from now. Survey results are published quarterly with a maximum index of 10.
