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.
- Market conditions vary across local markets, but the REALTORS® confidence and buyer traffic indices indicate that market conditions were mainly "strong" rather than "weak" in May 2016.
- Across all property types, REALTORS® reported strong demand and brisker sales in their areas, but severely low inventory continued to depress sales, pushing prices up and making homes increasingly unaffordable, especially for first-time buyers.
- Sustained job growth and the low cost of obtaining a mortgage, with 30-year fixed rates still below four percent, are likely underpinning the strong housing demand.
- First-time homebuyers accounted for 30 percent of sales.
- Very low supply, declining affordability, appraisal issues, and lender processing delays were reported as the key issues affecting sales. Still, most respondents were confident about the outlook for the next six months across all property type.