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.
Read More HERE at RIS Media.