The Real Estate Board of New York published their quarterly survey of the real estate market in NYC recently. The report, which measures the present and six month forecasted confidence in New York City’s real estate market surveys broker’s professional dealings and thereafter reports their outlook on the future on an index score between of 0 to 10. According to the Quarter 1 REBNY Real Estate Broker Confidence Index, confidence has hit 6.66 out of 10 which is a 53% increase from the previous quarter.
The future also looks bright according to the confidence of real estate brokers. The survey also looks into future confidence. The survey indicated that confidence is at 7.71 for the future indicating that brokers believe that the industry will bounce back significantly in the coming months. This is also the highest level of future broker confidence since Quarter 3 of 2015. James Whelan, President of REBNY states “This surge in broker confidence is happening alongside encouraging signs in our City, the overall economy, and particularly the real estate market where commercial and residential market activity are exhibiting clear signs of momentum. It is critical to seize this moment so that New York comes back stronger than ever.”
Broker confidence falls in line with lease signings in March. Lease signings in March jumped to 4,986 in March,. The residential broker confidence index stood at 7.66. That is a 32 percent increase compared to last quarter.
On the commercial side, brokers are feeling positive as well. The overall confidence at 5.65 which is a 96 percent increase from the previous report. Future confidence for the next six months at 7.27. REBNY also gives the following analysis of the commercial market:
The current real estate market provides a good opportunity for commercial investment. As soon as the economy recovers, they believe businesses will confidently return.
People are beginning to return to office space due to the vaccine rollout. Their belief is that the commercial market will continue in a positive direction over the next 12 months.
The combination of increased vaccination rates causing higher consumer confidence, better weather and increased employment are boosting the commercial real estate market.
Landlord and tenant expectations are in a rare moment of alignment and there is a lot of activity in the restaurant and services industry.
BJD Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx. Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.