According to the Real Estate Board of New York (REBNY), their latest Real Estate Broker Confidence Index for the second half of 2024 has shown positive results for commercial brokers. This marks a significant change from previous years, as both the Current Confidence Index and Expectations Index have been in decline since 2022. However, they have steadily increased since Q1 of 2023.
On the other hand, residential brokers have experienced a decline in confidence over the past year. The Residential Current Confidence Index and Expectations Index have both trended downward.
In H2 2024, there was a notable shift in commercial broker sentiment with an increase from -23.1 to 25.7 on the Current Confidence index – its strongest reading since Q3 of 2021. Additionally, there was also an improvement in expectations with a jump from 7.2 to57 .8 on this six-month outlook index.
Keith DeCoster, REBNY’s VP of market data and policy attributes this uptick in confidence among commercial brokers to factors such as more employees returning to office spaces and approval for City Of Yes initiatives which aim at boosting economic growth within cities across New York State.
He also notes that regulatory decisions along with ongoing challenges related to interest rates and limited inventory continue causing pessimism among residential brokers.
Looking ahead into future developments within their respective markets ,brokers are closely monitoring how new incentives for residential development will be utilized amidst debates about potential outcomes.”
Overall , it is evident that REBNY’s Commercial Broker Confidence continues trending upward based on these recent findings .
