A recent survey conducted by the Real Estate Board of New York (REBNY )revealed that New York real estate brokers are more confident this year than last year, largely due to an improved, stronger economy and a significant rise in residential sales. The survey, aptly named the REBNY’s Real Estate Broker Confidence Index, indicated a rise to 9.21 for the first three months of the year compared to 9 of the same three months in 2013. With the index at 8.75 for the third quarter of 2013, real estate industry will have to adopt a wait and see approach to see how the year ends up. Steven Spinola, REBNY President, said that brokers of both residential and commercial real estate are confident about the New York City real estate market.
The REBNY survey is giving to member brokers and is scored from zero to ten with five considered neutral. Though concern was expressed about interest rate and the fact that property costs are up, driving demand down, confidence was still up. Brokers appear as confident about the next six months in the market as they are now about the market. The survey also revealed that brokers are more confidant now than they had anticipated they would be at this time in the third quarter REBNY survey for last year. One change that brokers agreed on was that the supply they didn’t have last year is no longer a problem as demand has decreased with rental prices exceeding what people are willing to pay.
Commercial real estate brokers in New York City are about as confident as they could possibly be according to the REBNY survey. The index for commercial real estate peaked at 9.62, rising from the 9.49 of last year’s fourth quarter. Results show a slight rise in six month confidence levels. Brokers pointed to several vital aspects affecting confidence in the retail leasing market, one being the continued strength of New York City tourism. Brokers also pointed out that lease expirations will provide space availability. According to the survey it is also believed that growth in aspirational sectors in retail, mainly footwear and apparel, will have the greatest affect on the leasing market.
The REBNY survey speaks volumes. New York City real estate brokers are moving confidently toward a strong, solid fourth quarter, hopeful that the fourth quarter numbers can only get better.
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