Realtors confident on next six months

Realtors remain mostly confident in the next six months of the real estate market, thanks to 30-year fixed rates still below 4 percent, continued job growth, and recent measures that have made credit more accessible and cheaper, according to the April 2015 Realtor’s Confidence Index Survey, which is based on responses from more than 1,000 Realtors about their latest transactions.

Image credit: DanEvans via Pixabay.com

Across all property types (single family, townhomes, and condos), the number of respondents indicating the market as “strong” outnumbered those who viewed the market as “weak.”

With stronger buyer demand and tight supplies, homes continue to sell relatively quickly, typically within 39 days in April, according to the survey. Also, Realtors increased their price expectations last month. Those surveyed expect prices to increase at a faster pace in the next 12 months with the median expected price growth to be 3.9 percent (up from 3.5 percent expectation in March’s survey). Realtors in Colorado were the most upbeat about price increases in the U.S., with median expected price growth at 6 percent, followed by the District of Columbia at 5 percent.

Realtors also cited recent measures to open the credit box as having a profound impact on the housing market, such as with the Federal Housing Administration to lower its mortgage insurance premiums and the re-introduction from Fannie Mae and Freddie Mac to back 3 percent down payment loans.

Realtors are the most upbeat about the overall housing market in states like North Dakota, Texas, Oklahoma, California, Oregon, Washington, Florida, New York, and Massachusetts, according to the survey. Also, Realtors outlook over the townhome and condo markets remained highest in Colorado.

For-sale inventories remain tight in many states but seller traffic was reported as improving in many areas, particularly Utah, Wyoming, South Dakota, Texas, Missouri, Louisiana, Mississippi, Alabama, South Carolina, and New Hampshire.

While real estate professionals remain generally optimistic about housing’s outlook for the next six months, real estate professionals’ continued to have the following concerns about the market:

  • Tight inventory in most states especially for move-in ready and “affordable” units;
  • Financing issues, such as qualifying for a mortgage still remains tough and the underwriting process is slow, leading to delayed closings;
  • Appraisal valuation concerns and delays due to “questionable” comps, particularly for FHA/VA loans, use of “out-of-town appraisers”, and second appraisal requirements;
  • Impact of the new mortgage procedures (RESPA-TILA) on closings;
  • Negative impact of low oil prices in states with oil/gas production;
  • Slowing demand from international buyers (e.g., Canadians) due to strong US dollar;
  • Uncertainties associated with flood insurance rates;
  • Impact of upcoming interest rate increase on demand.
Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.

Recent Posts

Refinance applications jump on wild swings in mortgage rates

Mortgage rates last week rebounded, having dropped towards the end of July. As a result,…

1 day ago

Advantages of Real Estate Agents Having Their Own App

As a real estate agent, you may wonder if having your own app is worth…

1 day ago

How the Inflation Reduction Act Will Affect the Real Estate Industry

If you're new to home buying or you're looking to expand your real estate portfolio,…

1 day ago

Building Your Virtual Real Estate Dreams: How the Metaverse “Housing Boom” Might Change Everything

Real estate investors are always looking out for the next great market to corner. Most…

2 days ago

This Week’s Focus Is On Tampa Agents

This week we travel down to Tampa, Florida in search of the top real estate…

2 days ago

Zillow makes AI-powered virtual tour tech available to everyone

Zillow has said its artificial intelligence-powered virtual home tours are now available nationwide on all…

2 days ago