The decline in New York City real estate brokers’ confidence continued in the second quarter of 2016 with commercial and residential brokers concerned by global economic instability and the uncertain political future of the U.S.
The Real Estate Board of New York’s (REBNY) latest broker confidence index dipped 0.19 points to 7.04 in the second quarter of 2016, from 7.23 during the previous three-month period, perpetuating the index’s gradual decline, which first started in the fourth quarter of 2014 when the index was 9.22.
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"Uncertainty is rising among the residential and commercial brokers who participated in our latest survey," said John H. Banks, III, REBNY President. "While their softened confidence is reflected in the index, both groups maintain cautious optimism for the current and future New York City real estate market."
The drop in overall broker confidence in the current market and in the market six months from now was driven by the commercial broker confidence index as concerns about the U.S.’s political future and global turbulence have continued to temper the outlook of some commercial brokers.
The residential broker confidence index was also slightly lower as the potential of rising interest rates and the lack of sales inventory remained concerns among residential brokers in the current market.
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Residential brokers suggested that domestic buyers are delaying on purchases because they anticipate prices will fall. At the same time, foreign buyers have also grown more cautious due to Brexit, and other global economic turmoil.
