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 June 2014 survey of REALTORS® indicates a decline in confidence across all property markets about current conditions and the outlook for the next 6 months. Tight supply has constrained activity in many areas although inventory was reported to have increased in some areas such as in CA, FL, and UT. REALTORS® continued to report that the lending environment remains a challenge even to creditworthy borrowers. The recent price recovery amid the slow pace of income and job growth has made it more difficult for some buyers to access mortgage financing.
Given the demand-supply imbalance, home prices generally continued to increase and properties were on the market for fewer days for the sixth straight month. Distressed sales continued to account for a smaller portion of the market. REALTORS® reported that the expiration in December 2013 of the tax break on debt forgiven arising from a short sale has held back potential sellers from the market. In some markets, the cost of obtaining flood insurance continued to be reported as having a negative impact on potential sales.