REBNY Brokers Survey: Confidence ticks up despite inventory concerns for Residential Market

According to a monthly survey of real estate brokers by The Real Estate Board of New York, brokers remained confident in the market in February 2013, with increased confidence indexes for both the residential and commercial markets compared to last month. The Real Estate Market Overall Confidence Index 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. 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 Residential Real Estate Market Overall Confidence Index in February 2013 was 8.93, the highest recorded index over the past nine months, despite concerns raised by residential brokers in survey responses that the low supply of inventory could adversely impact the market. "Brokers expressed concern that housing prices will increase, making it difficult to appraise property in a changing market. These difficulties will create lending issues, making it more challenging for buyers to finance," said REBNY senior vice president for research Michael Slattery. "Despite inventory concerns, residential brokers remain optimistic about the typically busy spring real estate market." The Commercial Real Estate Market Overall Confidence Index was 8.89 in February 2013, up from 8.80 last month. Commercial brokers remain optimistic that the economy is improving and investors are becoming more active. Slattery said, "For the first time we had a 10.0 confidence level on the commercial side demonstrating the strength of the financing market and a recognition of the improving economic conditions overall." REBNY's Broker Confidence Index is a collection of data from anonymous online surveys given to REBNY's residential and commercial brokerage division members. Survey data is tabulated on a scale of zero to ten, with five being neutral.