REALTORS® Confidence Index
The REALTORS® Confidence Index is a key indicator of housing market strength based on a monthly survey sent to over 50,000 real estate practitioners. Practitioners are asked about their expectations for home sales, prices and market conditions. In addition, the "Questions of the Month," feature results of a timely aspect of the housing market.
- The seasonal uptick in market activity in spring and summer, low 30-year fixed rates of below 4 percent, continued job growth, and recent measures to make credit more accessible and cheaper (e.g, lower FHA mortgage insurance, 3 percent downpayment for GSE-backed loans) appear to be having a positive market impact.
- For the third month in a row, the REALTOR® Confidence Index-Six-Month Outlook was above 50 across all property types (single family townhomes, condominiums), indicating that the number of respondents who viewed the market as “strong” outnumbered those who viewed the market as “weak.”
- Inventory remained tight as indicated by the Seller Traffic Index which stayed below 50
- With stronger demand and tight supply, homes sold realtively quickly, typically within 39 days.
- Although REALTORS® were optimistic about the outlook for the next six months , they noted several issues of concern, including: tight inventory in most states especially for move-in ready and “affordable” units; financing issues - qualifying for a mortgage is tough, and the underwriting process is slow, leading to delayed closings.