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In May 2015, REALTORS® were confident about the outlook in their local markets in the next six months, according to the May 2015 REALTORS® Confidence Index Survey.[1] This report is based on the responses of 3,805 REALTORS®.
Sustained job creation at a pace of 220,000 jobs per month in 2015, lower FHA monthly mortgage insurance premium rates (resulting in a 0.5 percentage point reduction since January 2015), and the availability of three percent downpayment for loans backed by Fannie Mae and Freddie Mac since early this year are likely underpinning the improved market confidence.
The following maps show the REALTOR® Confidence Index-Six-Month-Outlook across property types by state.[2] In the case of single family homes, all states registered an index greater than 50 for the third month in a row, which means that the number of respondents who had a “strong” outlook outnumbered those with a “weak” outlook. Despite the slump in oil prices, REALTORS® generally expect the real estate market to be “strong” in North Dakota, Texas, and Oklahoma.
In the case of townhomes and condominiums, confidence is most upbeat in Colorado. Homebuying activity for condos and townhomes is also generally strong in California, Oregon, and Washington where a technology boom is fueling demand. REALTORS® are also broadly upbeat about their local markets in Texas, Florida, New York, and Massachusetts. Homebuying is expected to be generally weak in other states. REALTORS® have reported that FHA’s and the GSE’s (Fannie Mae and Freddie Mac) financing eligibility regulations make condominium financing difficult to obtain.[3]
[1] Respondents were asked “What are your expectations for the housing market over the next six months compared to the current state of the market in the neighborhood(s) or area(s) where you make most of your sales?”
[2] The market outlook for each state is based on data for the last three months to increase the observations for each state. Small states such as AK, ND, SD, MT, VT, WY, WV, DE, and the D.C. may have less than 30 observations.
[3] These regulations pertain to ownership occupancy requirements, delinquent dues, project approval process, and use for commercial space. Read the Statement of NAR Submitted for the Record to the Senate Committee Housing and Banking Affairs on December 9, 2014 at http://www.ksefocus.com/billdatabase/clientfiles/172/1/2180.pdf
Notice: The information on this page may not be current. The archive is a collection of content previously published on one or more NAR web properties. Archive pages are not updated and may no longer be accurate. Users must independently verify the accuracy and currency of the information found here. The National Association of REALTORS® disclaims all liability for any loss or injury resulting from the use of the information or data found on this page.
