Based on information from the May Realtors® Confidence Index, Realtor® confidence in the outlook for real estate markets dropped slightly in April but was still well above the lows experienced in 2010. The lowest readings are in Condos and Townhouses.
The confidence level for single family homes is approaching 40, with a reading of 50 representing moderately strong confidence.
Employment trends have major impacts on home sales, and the labor markets have been in a slow but positive recovery in recent months. Accordingly, we would expect to see some improvement in forthcoming months.
Jed Smith is Managing Director, Quantitative Research with the National Association of Realtors®. He has worked on real estate issues for the past 20 years, providing input on a variety of housing, commercial real estate, tax, and planning issues. Recently he has been involved in several international studies.