Point2 Real Estate Confidence Index
Q) What is the Real Estate Confidence Index?
R) The Point2 Real Estate Confidence Index (RECI) is a monthly forward looking market sentiment survey conducted by Point2 Technologies amongst its members in North America.
Q) What exactly does the Index measure?
R) The Index tracks street level confidence, optimism and pessimism amongst real estate professionals with regards to current, short term (3-6 months) and long term (6-12 months) outlook in their markets. Respondents answer three simple questions and rate their answers based on a 1-10 scale, 1 being ‘bad’ and 10 being ‘good’. For now, the published data is at the national level. In the fall, Point2 will begin to release data for the major US states as well, and for all Canadian provinces.
Q) What makes the RECI different from all the surveys out there?
R)The RECI is the first and only Index that takes a forward look at the real estate market and, from the people who know best. It provides a window on to the market that did not exist before, by answering the question we all pose: How is the market and where do you think it’s headed? It’s somewhat similar to the Home Builders Index in nature, but takes a look at a different aspect of the market.
Existing reports like the Schiller Index, the Standard & Poor’s or the Zillow reports are great but they capture past market performance.
Other reports by organizations like Clarus or Trulia aim to take a forward look, but they are statistical in nature and make projections based on mathematical algorithms, not on street level knowledge with a real look at sales funnels.
Q) How is the RECI conducted?
R) The RECI uses Survey Monkey to capture and automatically tabulate the data, including the median, which makes up the Index each month. The survey provides a national outlook for the US and Canada, and effective in the fall, will begin to provide data breakdowns for the major U.S. States and all the Canadian provinces.
The RECI is run at the beginning of each month for a week, after which it is closed and tabulated.
Q) When was the RECI launched?
R) The RECI first launched in June of 2009.
Q) How large is the respondent base and is its statistically valid?
R) The RECI is circulated to all of Point2’s members in North America, several tens of thousand members. Responses generated to date have been over 3000 each month in the US, and over 600 in Canada with representation from all States and provinces. The aggregate response rate makes the data statistically valid.
Q) Where can I access the RECI data?
R) You can access the findings at www.realestateconfidenceindex.com. On the same page, you can also easily capture the Index widget for publishing on your website.
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