Confidence about current market conditions was essentially unchanged in May 2014 compared to April, according to the May 2014 REALTORS® Confidence Index. An index above 50 indicates that more REALTORS® view housing conditions as “strong” compared to those who view it as “moderate” or “weak” [1].

Confidence about the outlook for the next six months dipped across all markets in May compared to April. Continued tightness in supply (although improving), difficult credit conditions, and the lackluster growth in income and savings were reported to be constraining sales. REALTORS® also commented on the difficulty of obtaining mortgage financing for condominiums which are typically the starter homes for first-time buyers due to FHA approval issues.

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[1] An index of 50 delineates “moderate” conditions and indicates a balance of respondents having “weak”(index=0) and “strong” (index=100) expectations or all respondents having moderate (=50) expectations. The index is calculated as a weighted average using the share of respondents for each index as weights. The index is not adjusted for seasonality effects.