Point2 Technologies recently released the results from its Real Estate
Confidence Index (RECI) survey for the month of April that indicate improved
market conditions and forward looking sentiment amongst real estate brokers
and agents around the United States, with uncertainty over the longer term
weighing in on the Index.The RECI, a real estate market leading indicator that tracks broker and
agent forward looking confidence and market opinion nationwide rose for the
second month in a row.For April 2010, the RECI recorded a 5.82 (+0.87 %) reading on the RECI scale
of 1-10 (1 being 'bad' and 10 being 'good'), up from 5.77 in March (+2.49%).March results were underscored by a jump of 27% in new home sales for that
month, as reported by the Commerce Department, and a 6.8% rise in existing
home sales, according to the National Association of Realtors' report.The Current Sentiment variable within the RECI, one of three components that
make up the monthly Index, rose to 5.30 (+5.16%) for the April period.
Positive sentiment amongst survey respondents was fueled by improved current
market conditions, with increased sales activity in the low to mid price
range properties category remaining the common denominator. RECI survey participants pointed to the looming tax credit expiry on April
30, 2010 as the key driver for increased sales, with more agents in more
states including Florida, California and Hawaii reporting multiple offer and
bidding war occurrences than the month before. Some sales professionals also
cited increased investor activity.The current federal government program offers home rebates of U.S. $8,000
for new home buyers and US $6,500 for existing home buyers when moving up.Lack of sufficient inventory in the lower, active price categories in
several of the 'hot' markets was seen as a key issue that could be inflating
prices. A number of respondents indicated that more foreclosure inventory is
likely being withheld by the banks and is expected to go on the market in
the future, which in turn respondents anticipate will apply renewed downward
pressure on prices.More positive sentiment and feedback were offered in the April survey than
in prior months, out of recently challenging markets, including Michigan.
"Closed sales up 50% for 1st quarter 2010 vs. 2009 in South West Michigan."
"Prices have flattened out, under 100K market is becoming a seller's market
with multiple offers. Things are looking better than they have for over two
years." "Homes are having multiple offers and at the listing price almost."Nevada agents were also more upbeat. "Lots of activity even if prices not
moving up. Not moving down either. Existing home sale up significantly."
"Residential real estate is undervalued in Nevada, prompting
buyers/investors to be very active." "We're seeing record sales in our
office and think it will continue."Other positive signs include some reporting of more activity in higher price
range properties, in several states, a category almost completely bypassed
in RECI respondent feedback since the Index debuted last summer.Notably, uncertainty regarding the market's prospects following the expiry
of the current incentive program was predominant in the April survey and was
reflected in both Short Term (3-6 months) and Long Term (12-18 months)
broker and agent optimism/pessimism RECI component ratings, with both
retreating versus the previous month.The drops pressured the overall Index, with the prevalent respondent
concerns being uncertainty over the market's reaction following the expiry
of the tax credit program; the risk of interest rate hikes; and, pressure
anticipated from additional foreclosure inventories.Key issues also included persistently tight lending practices and slow
approvals, both seen as major hurdles to the efficient absorption of REO and
foreclosure inventory, and to a sustained market recovery.The RECI's Short Term (3-6 months) variable regressed marginally to 5.74
(-0.35%) on the 1-10 scale, and the Long Term (12-18 months) indicator moved
back from 6.51 to 6.43 (-1.23%).Colorado, Georgia, Illinois and Indiana, amongst a number of other markets
continued to experience abundant bank owned and foreclosure property
inventories, which pressured prices and sentiment in those states.For more information, visit www.Point2Agent.com and
www.RealEstateConfidenceIndex.com.
Confidence Index (RECI) survey for the month of April that indicate improved
market conditions and forward looking sentiment amongst real estate brokers
and agents around the United States, with uncertainty over the longer term
weighing in on the Index.The RECI, a real estate market leading indicator that tracks broker and
agent forward looking confidence and market opinion nationwide rose for the
second month in a row.For April 2010, the RECI recorded a 5.82 (+0.87 %) reading on the RECI scale
of 1-10 (1 being 'bad' and 10 being 'good'), up from 5.77 in March (+2.49%).March results were underscored by a jump of 27% in new home sales for that
month, as reported by the Commerce Department, and a 6.8% rise in existing
home sales, according to the National Association of Realtors' report.The Current Sentiment variable within the RECI, one of three components that
make up the monthly Index, rose to 5.30 (+5.16%) for the April period.
Positive sentiment amongst survey respondents was fueled by improved current
market conditions, with increased sales activity in the low to mid price
range properties category remaining the common denominator. RECI survey participants pointed to the looming tax credit expiry on April
30, 2010 as the key driver for increased sales, with more agents in more
states including Florida, California and Hawaii reporting multiple offer and
bidding war occurrences than the month before. Some sales professionals also
cited increased investor activity.The current federal government program offers home rebates of U.S. $8,000
for new home buyers and US $6,500 for existing home buyers when moving up.Lack of sufficient inventory in the lower, active price categories in
several of the 'hot' markets was seen as a key issue that could be inflating
prices. A number of respondents indicated that more foreclosure inventory is
likely being withheld by the banks and is expected to go on the market in
the future, which in turn respondents anticipate will apply renewed downward
pressure on prices.More positive sentiment and feedback were offered in the April survey than
in prior months, out of recently challenging markets, including Michigan.
"Closed sales up 50% for 1st quarter 2010 vs. 2009 in South West Michigan."
"Prices have flattened out, under 100K market is becoming a seller's market
with multiple offers. Things are looking better than they have for over two
years." "Homes are having multiple offers and at the listing price almost."Nevada agents were also more upbeat. "Lots of activity even if prices not
moving up. Not moving down either. Existing home sale up significantly."
"Residential real estate is undervalued in Nevada, prompting
buyers/investors to be very active." "We're seeing record sales in our
office and think it will continue."Other positive signs include some reporting of more activity in higher price
range properties, in several states, a category almost completely bypassed
in RECI respondent feedback since the Index debuted last summer.Notably, uncertainty regarding the market's prospects following the expiry
of the current incentive program was predominant in the April survey and was
reflected in both Short Term (3-6 months) and Long Term (12-18 months)
broker and agent optimism/pessimism RECI component ratings, with both
retreating versus the previous month.The drops pressured the overall Index, with the prevalent respondent
concerns being uncertainty over the market's reaction following the expiry
of the tax credit program; the risk of interest rate hikes; and, pressure
anticipated from additional foreclosure inventories.Key issues also included persistently tight lending practices and slow
approvals, both seen as major hurdles to the efficient absorption of REO and
foreclosure inventory, and to a sustained market recovery.The RECI's Short Term (3-6 months) variable regressed marginally to 5.74
(-0.35%) on the 1-10 scale, and the Long Term (12-18 months) indicator moved
back from 6.51 to 6.43 (-1.23%).Colorado, Georgia, Illinois and Indiana, amongst a number of other markets
continued to experience abundant bank owned and foreclosure property
inventories, which pressured prices and sentiment in those states.For more information, visit www.Point2Agent.com and
www.RealEstateConfidenceIndex.com.
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