Broker and Agent Confidence Drops 1.72 Percent in May
Forward-looking confidence in the real estate market in the United States dropped for the month of May 2010, according to Point2 Technologies’ Real Estate Confidence Index (RECI) survey results released by Point2 this week.
The national RECI, a monthly survey that tracks forward-looking market sentiment of over 50,000 real estate professionals across the United States slipped 1.72 percent compared to April 2010, with all three Index variable components retreating.
On the RECI scale of 1 – 10 (1 being ‘bad’ and 10 being ‘good’), the Index score came in at 5.72 for the May period, compared to 5.82 the prior month.
Opinion on the market’s Current state, one of the three Index components, dropped to 5.22 (-1.51%), after surging by 5.16 percent for the April period, which reflected expectations for solid market activity ahead of the now expired government tax credit incentive program that ended on April 30, 2010.
The 3 – 6 month Short Term optimism/pessimism variable dropped 2.26 percent, to 5.61, indicating a higher level of uncertainty across most markets for the spring and summer seasons.
The Long Term 12 – 18 month optimism/pessimism variable also retreated, dropping by 1.71 percent, to 6.32 on the 1 – 10 scale.
Long term concerns regarding the end of the government tax incentive program permeated RECI respondent feedback in most markets around the country in the May survey, with a number of brokers and agents reporting and relating sudden retreat in market activity to the expiry of the latest incentive program at the end of April.
Exceptions included Nevada, which continued to report multiple offer situations on low to mid price range properties, and Virginia, as well as most regions with significant military personnel relocation activity.
A persistent, tough ending environment remained one of the primary obstacles to foreclosure inventory absorption and market recovery, according to survey participants in most states.
‘Shadow’ foreclosure inventory was referred to by a number of respondents to describe foreclosed properties currently thought to be held back by lenders and expected to trickle into the market over the coming months. Respondents expressed concern that lenders could be manipulating market prices by holding onto such inventory, a practice also expected to dampen markets and home prices for an extended period of time.
High jobless rates and the risk of rising interest rates were also frequently cited as reasons for long term concern.
The complete May 2010 Report including respondent commentaries broken down by state can be accessed at www.RealEstateConfidenceIndex.com. 1380 completed and usable surveys were used to generate the RECI score for May.
RECI Survey Instrument and Methodology
The Real Estate Confidence Index (RECI) tracks the real estate market opinions of tens 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 additional licensed real estate professionals across the nation at the beginning of each month. 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 and respondent commentaries are captured and presented in Point2’s monthly RECI Summary Report.
About Point2 Technologies Inc.
Point2 Technologies is one of the first web-based inventory management and online marketing software developers in the world, today serving customers in the real estate and heavy equipment industries in over 120 countries.
Point2 markets its industry leading listing syndication and website solution, Point2 Agent , in partnership with major real estate Multiple Listing Service organizations and Associations, seamlessly reaching and enabling syndication for hundreds of thousands of real estate professionals.
More information about Point2 can be found at www.point2.com/news.asp.
For questions or to request an interview, please contact Roger Noujeim at Point2 Technologies PR at firstname.lastname@example.org or at 888-955-7900. Custom data, graphics and charts featured on the RECI website or within the RECI report can also be obtained in high resolution, upon request.
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