According to the REALTORS® Confidence Index (RCI) Report for March, the National Association of Realtors (NAR) reveals that Realtor confidence is up, reflecting the seasonal upswing, although it is still below the average for this time last year.
The RCI provides monthly information about market conditions and expectations, buyer/seller traffic, price trends, buyer profiles, and issues affecting real estate based on data collected in a monthly survey of Realtors.
With the onset of spring, the Buyer Traffic Index notched up to 63 compared to 59 in February, although demand was softer compared to a year ago because buyers faced higher prices along with the continued difficulty in getting a mortgage and financing.
NAR says that Realtors’ primary concerns are the low levels of inventory, difficult credit conditions, and uncertainty about flood insurance regulation, among others.
Taking into account current frustrations
Still, demand continued to exceed supply with the Seller Traffic Index at 42 versus 43 in January. In many states, REALTORS® expressed frustration about the low inventory levels of available homes and continued difficulty in obtaining mortgage financing, even among clients with good credit ratings.
Confidence about the outlook for the next six months slightly improved compared to February, but is still lower compared to the same period a year ago. Looking at the current conditions for single family sales, they rose to 71 versus 60 in February. And the indexes for townhouses/duplexes also rose, to 49.
The future outlook is slightly brighter
The six-month Outlook Index for single family homes was at 69, versus 68 in February; the index for townhouses hit 51 compared to 50 in January, and the index for condominiums rose to 47 versus 46 in February.
The current report is based on the responses of 3,833 Realtors about their transactions in March 2014. The survey was conducted during April 1 -7, 2014. Questions about the characteristics of the buyer and the sale are based on the Realtors’ last transaction for the month.
[notification type=”note” title=”Download”]Click here to download the full Realtor Confidence Index report for March 2014.[/notification]