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Takeaways:
- Residential broker confidence is down slightly in New York City.
- The low inventory of two-bedroom apartments in New York City, coupled with interest rate uncertainty, has also affected brokers’ confidence in the market six months from now.
- Despite the reduction in confidence, brokers were positive about robust sales volume, the growing popularity of new neighborhoods and increased demand, especially in Brooklyn and Queens.
Uncertainty over interest rates and a lack of inventory has made New York residential brokers less confident in the market.
According to the Real Estate Board of New York’s latest Broker Confidence Index, residential broker confidence decreased to 8.21 during the second quarter, down from 8.86 in the previous quarter.
The low inventory of two-bedroom apartments in New York City, coupled with interest rate uncertainty, has also affected brokers’ confidence in the market six months from now.
This index figure dropped to 7.93 during the quarter, down from 8.82 seen during the previous three-month period. The 7.93 figure represents the lowest confidence projection since the board began reporting in 2013.
Despite the reduction in confidence, brokers were positive about robust sales volume, the growing popularity of new neighborhoods and increased demand, especially in Brooklyn and Queens, the board notes.
According to Ariel Property Advisors, Brooklyn had a big second quarter, as the borough saw six transactions trade for more than $35 million — two of which exceeded $150 million apiece.
Two large multifamily transactions pushed Queens’ dollar volume up on a quarter-to-quarter and year-over-year basis.
Overall, New York City saw 225 multifamily transactions, totaling $3.3 billion in gross consideration, completed during the second quarter.
This transaction volume represents a 74 percent increase in dollar volume, a 33 percent increase in transaction volume and a 12 percent increase in property volume compared to the second quarter of 2014.
Ariel notes that sales and volume figures remained relatively flat when compared to the first quarter of 2015.
“New York City multifamily sales have had an incredible first half and we expect this momentum will carry through to the end of the year, from both a transactional and pricing perspective,” said Shimon Shkury, president of Ariel Property Advisors.
