The recent results of the National Association of Realtors “Realtor’s Confidence Index” reflects the big picture view of confidence in the real estate market.
And of all the options available -the current report clearly shows Realtors confidence in the real estate market is “Fair” as of the last week of July. Lawrence Yun, Senior Vice President and Chief Economist for the National Association of Realtors notes that the survey results are national and that real estate is “local”- but the survey clearly reflects concerns about problems impacting home sales in greater Cincinnati too.
The basis for the report:
Interesting points from the survey of Realtors:
- Current confidence index declined slightly in July
- Realtors see several factors constraining the recovery
- Tight mortgage standards
- Stringent slow bank approval process
- Low appraisal values
- Low inventory relative to demand
- Sellers reluctant to list at “new normal” level of prices
- Not enough bank-owned inventory is being released to relieve tight supply
Other interesting facts:
- Property on the market for more than 6 months at 21% vs 24%
- Foreclosures selling at 17% below market value in July
- Short sale selling at 15% below market value in July
- First time home buyers comprise 34% of the market in July
No earth shattering news in the latest report- but it’s interesting to the views of the people closest to what’s actually happening in the real estate market.