Fear of rising interest rates cools NYC real estate market confidence

Residential brokers have higher hopes than commercial agents
  • For all brokers, assurance levels at the close of 2015 stood at 7.87, which is a .47 fall from the prior quarter. In the Fall, faith in the market was higher at 8.34.
  • The drop is attributed to commercial broker confidence cuts, which went from 8.85 to 7.88 between quarters.
  • Residential brokers were more optimistic regarding the short-term and six-month forecast for New York City. Agents’ confidence for six months from now rose from 7.58 to 7.90 between quarters.
  • A few residential agents specifically commented on the shortage of mid-market properties available, mentioning the need for housing options between $1.25 and $4 million that still offer a “quality” product – well-appointed, but not overly lavish.

Although confidence in the real estate market dipped almost half a point in the fourth quarter of last year amongst all brokers, residential brokers’ certainty rose from 7.83 to 7.85, according to the REBNY 4th Quarter Broker Confidence Index Report.