According to a survey by the National Association of Realtors (NAR), realtors are fairly optimistic about market conditions going into 2017.
In 2008, NAR created the Realtors Confidence Index Survey Report, which is a monthly survey designed to give a sense of how optimistic or pessimistic realtors feel about market conditions in their area.
Member realtors are asked, “What are your expectations for the housing market over the next six months compared to the currents state of the market in the neighborhood(s) or area(s) where you make most of your sales?”
Not faking it, just making it
Realtors are asked to respond on a scale from “weak” to “very strong,” with scores assigned accordingly. The scores are compiled into an index that gives a rating of overall realtor confidence.
The results from the December 2016 survey reveal that most realtors feel that their markets will remain strong in the first half of 2017.
In fact, the index has been rising every year since 2012, and this year was a record-breaker, with each type of property (condominiums, townhomes, and single family homes), breaking the 50 mark on the index. The rating for condominiums was the highest it’s ever been, possibly because the passage of the Housing Opportunity Through Modernization Act has made more financing for condominiums available and has streamlined the process of buying or re-certifying a condo.
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Strongest to weakest
For single-family homes, the outlook was likewise optimistic, with market predictions rated as “strong” in most states, and “very strong” in fourteen states, plus the District of Columbia. Only in North Dakota were market conditions predicted to be “moderate” in 2017 compared to current conditions.
For townhomes, the outlook was a bit more mixed, with realtors’ responses varying from weak to strong depending on the state.
You can read the full report here.