AgentBrokerage

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.

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OlegAlbinsky / iStock.com 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. 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. REBNY also surveys confidence in the market six months down the road: Overall, brokers outlook dipped .3 points since the prior quarter in 2015, from 7.87 to 7.57 at the end of 2015. The drop is attributed to commercial broker confidence cuts, which went from 8.85 to 7.88 between quarters. Commercial brokers' confidence in the market six months from now also declined .93 points quarter-over-quarter. The primary causes behind the lack of assurance in commercial real estate surrounded the interest rate increases seen in late 201...