Residential and commercial brokers remain confident in the market according to a recent monthly survey of real estate brokers by The Real Estate Board of New York.
The Real Estate Market Overall Confidence Index-- tabulated on a scale of zero to ten, with five being neutral -- for the first two months of 2013 was 8.86, almost a full percentage point higher than the average for 2012 which was 7.99. REBNY’s Broker Confidence Index is a collection of data from anonymous online surveys given to REBNY’s residential and commercial brokerage division members.
Brokers were most confident when asked about expectations of the financing market, particularly on the commercial side, for which an index of 10.0 was recorded for the first time since the survey was conducted in June 2012. This may be attributed to brokers’ hopes that the economy is improving and investors are becoming more active.
The overall confidence index for commercial real estate was 8.89 in February 2013, up from 8.80 last month. Commercial brokers remain optimistic and this shows recognition of the improving economic conditions overall.
On the residential side, the overall confidence index in February 2013 was 8.93, which was the highest recorded index over the past nine months. This index result was surprising, given concerns raised by residential brokers in survey responses that the low supply of inventory could adversely impact the market.
The survey showed that brokers expressed concern that housing prices will increase, making it difficult to appraise property in a changing market. These appraisal difficulties will create lending issues, which makes it more challenging for buyers to finance. Yet, despite these inventory and lending concerns, residential brokers remain optimistic that the typically busy spring real estate market is just around the corner.
REBNY began collecting monthly data through the survey in June 2012. A full copy of the REBNY Broker Confidence Index can be found on the homepage of REBNY’s website at www.REBNY.com