Realtors Confidence Index Supports Optimism in Industry
If you’ve been following housing industry news over the last quarter, you’ve heard about the increase in construction starts, low mortgage rates, increasing home prices and values, and the impact of those combined factors on the economic recovery.
The Realtors Confidence Index produced by the National Association of Realtors further supports the recent surveys and reports of optimism on the housing market’s revival this year.
The Index was sent to about 50,000 Realtors. The 3,627 responses gathered from February 25 to March 1 included expectations about overall market conditions, buyer and seller traffic, price, buyer profiles and other issues affecting real estate.
The survey found that the confidence index for single-family homes increased to 62 percent, with the outlook for the next six months climbing to 69 percent.
According to the survey, Realtors’ confidence stems from strong buyer demand and a tight inventory. As we’ve mentioned previously, this will lead to higher home prices. About 83 percent of survey respondents reported constant to rising prices compared to their average transactions a year ago.
The Realtors Confidence Index is important in gauging the future of the market. An independent study found 84 percent of homebuyers would use the same Realtor again – signaling the relational impact working with a Realtor can have.
For a mortgage company, it is good to see Realtors’ confidence steadily increasing as their relationships with homebuyers can have an impact on the financial decision they make. Our team values our industry partnerships with Realtors and the survey serves as a refreshing reminder that our partners are on the same page with us when it comes to the housing market’s future.
The housing industry has been primed for growth for some time, and with confidence indices like these drastically increasing, the industry will have the determination and optimism that is necessary to succeed.
– J.D. Crowe, Senior Vice President of Southeast Mortgage