New York brokers optimistic but cautious

Real estate brokers in New York City remain concerned about the residential rental and office leasing markets in the first quarter of 2017

New York brokers optimistic but cautious
Real estate brokers in New York City remain concerned about the residential rental and office leasing markets in the first quarter of 2017.

A confidence index from the Real Estate Board of New York slipped 0.13 points to 5.87 following a strong boost in the last three months of 2016. That lift was down to the future of the market in the coming 6 months, a measure which slipped at the start of this year.

“Our residential and commercial brokers stepped into the first quarter of 2017 with greater confidence, but are proceeding with cautious optimism,” said REBNY President John Banks. “Overall real estate activity in New York City continues at a healthy pace as the market adjusts to the anticipated impact of new inventory.”

Residential brokers were more optimistic than their commercial peers with a rise in their confidence index for the first time in a year. confidence in commissions, financing, and the residential market remained high but the rental market was a concern.

“New rental buildings, combined with a wider choice of neighborhoods, have lowered rental prices,” shared one residential broker. “Interest rates rising will show a decline in sales prices.”

In the commercial sector, office leasing is the biggest concern for brokers, negatively impacting their confidence index. Too much inventory may result in challenges ahead as some boroughs see flatter activity, while higher financing costs may impact the commercial sales market.

“Interest rate uncertainty, instability in brick and mortar retail is a problem,” said one commercial broker.

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