REALTORS’® confidence about market conditions for the next six months remains “above moderate”, but weakened for all markets in August compared to July. The index for single family homes fell to 65 (69 in July). The index for townhouses went below moderate to 48 (51 in July), while the index for condominiums further slid to 43 (46 in July).
The prospect of further increases in interest rates, the continued difficulties in accessing mortgage financing, appraisal problems, modest job growth, and higher flood insurance rates in some areas were the main concerns reported by respondents in the August REALTORS® Confidence Index Survey.
Although all real estate is local, real estate markets around the country have experienced good price and sales growth in the past 12 months. REALTOR® confidence is still high compared to previous years, so some leveling off to slower growth rates will help to avoid speculative behavior—the type of behavior that created major problems a few years ago.