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2009-10-15 17:15:28

Real Estate Confidence Index (RECI) Dips 0.85 Percent in September

 

Point2 Technologies Inc. (“Point2”) today released the results of its forward looking Real Estate Confidence Index (RECI) for the United States for the month of September 2009, reporting a reading of 5.8 on the RECI scale of 1 – 10 (1 being “Bad” and 10 being Good”), compared to 5.9 for August 2009. The RECI remained virtually flat at a national level, slipping less than one percentage point.
 
The RECI tracks Current market sentiment, Short-Term (3 6 months) Optimism/Pessimism and Long-Term (12 18 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 averaged 5.06 on a seasonally adjusted basis, up from 4.96 in August. The change represents a 2 percent improvement in confidence across the country. However, the forward looking Short Term (3 – 6 months) Optimism Pessimism reading came in at 5.70, slipping 1.7 percent.
 
Long Term (12 – 18 months) Optimism/Pessimism was also off its recent high, dropping by 2.3 percent versus last month and further pressuring the Index’s overall score.
 
Bank owned properties (REOs) and low-priced foreclosures combined with the US$8,000 First Time Buyer Tax Credit were frequently credited by RECI survey respondents for spurring much of the market activity in the Study period. Foreclosures and REOs were however also cited as a primary cause for continued downward pressure on the market.
 
Other positive catalysts linked to the recent buying activity include low interest rates.
 
General concerns reported by survey respondents include i) the Federal Tax Credit program nearing its expiry on November 30, 2009, ii) persistent high REO and foreclosure inventories, iii) a weak employment picture and, iv) a continued tough financing environment. Tough appraisals, which tends to derail deals, and sporadic sentiment that more foreclosures are being held back were also mentioned by respondents in several states.
 
To obtain the RECI Summary Report including respondent commentaries, by State, visit .http://RealEstateConfidenceIndex.com
 
Nearly 2,500 real estate professionals across the United States contributed to the Real Estate Confidence Index in September.
 
 
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 time periods represents the Index measure for the month.
 
The RECI is open to the Point2 Agent membership 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, 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.
 
 
Media Contact:
 
Point2 Technologies Inc.
Roger Noujeim
Vice President of Public Relations
Toll Free: 1-888-955-7900 (U.S. and Canada)
E.
rnoujeim@point2.com
 
 

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