U.S. Real Estate Confidence Index Retracts 4.11% to 5.59% in October
Point2 Technologies Inc. (“Point2”) has released the findings from its Real Estate Confidence Index (RECI) survey for the United States, for the month of October 2009. The Index measured 5.59 on the 1 – 10 Index Scale (1 being “bad” and 10 being “good”), down 4.11% month-over-month.
While the October RECI score came in below the September reading of 5.83, a number of brokers and agents leveraging foreclosure properties in most states cited and credited strong business activity to this category, enabled by the federal government’s $8,000 First-Time Buyer Credit.
The RECI tracks the opinions of thousands of real estate brokers and agents, measuring their forward-looking sentiment of the real estate market, across the United States.
Properties in the mid to low price ranges continued to generate the majority of market activity in most states, as indicated by brokers and agents who participated in the RECI survey in October.
Typical winter season market adjustments were also cited by some respondents as a reason why markets may slow down until activity starts to rebound beginning in February.
The RECI tracks the current market sentiment, short-term (3 – 6 months) optimism/pessimism and long-term (6 – 12 months) optimism/pessimism of real estate professionals in the United States. The median across all three time periods represents the forward-looking Index measure for the month.
Real estate professionals’ current sentiment, one of the three variables that make up the RECI, averaged 4.89 on a seasonally-adjusted basis, for the month of October. The change represents a 3.36 percent decrease in confidence across the country versus last month. October is the first time the current sentiment has turned negative compared to the previous month’s reading, since the RECI’s introduction in June.
The forward-looking short-term (3 – 6 months) optimism/pessimism reading came in at 5.37, remaining above the mid point on the RECI 1 – 10 scale despite it being 5.79 percentage points lower than the September score.
Long-term (6 – 12 months) optimism/pessimism remains in stronger positive territory at 6.51 on the scale, but also off by 3.12 percent versus the September reading of 6.72.
Click on the link to obtain the complete RECI Summary Report including respondent commentaries by State.
1,524 licensed real estate professionals across the United States participated in the October survey.
Survey Instrument and Methodology
The Real Estate Confidence Index (RECI) tracks the real estate market opinions of thousands of licensed real estate professionals, brokers and agents, across the United States, accounting for seasonality, on a scale of one to ten (1 being “bad” and 10 being “good”). The RECI also rates respondent sentiment for market conditions 3 – 6 months and 6 – 12 months into the future on a ten-point scale (1 being “pessimistic” and 10 being “optimistic’). The median across all three time periods represents the Index measure for the month.
The RECI is open to the Point2 Agent membership and to tens of thousands of licensed real estate professionals across the nation at the beginning of each month, for up to seven days. Respondents complete a simple, four question survey through third party survey solution providers, Survey Monkey. The data is tabulated electronically, median averages surfaced for quantitative questions, and qualitative feedback is captured and presented in Point2’s monthly RECI Summary Report. For more details and a listing of the RECI survey questions, or to request the complete Summary Report, please visit www.RealEstateConfidenceIndex.com.
About Point2 Technologies Inc.
Point2 Technologies develops and markets web-based inventory management and online marketing software solutions for the real estate and heavy equipment industries .
Point2® is a trademark of Point2 Technologies Inc. All other company and product names may be trademarks of the respective companies with which they are associated.
Point2 Technologies Inc.
Vice President of Public Relations
Toll Free: 1-888-955-7900 (U.S. and Canada)
Toll Free: 1-888-955-7900 (U.S. and Canada)
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