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REALTOR® Confidence Continues to Wane in October 2013

The REALTOR® Confidence Index (RCI) for current market conditions continued to drop in October across all property types. An index of 50 marks “moderate” conditions [1]. About 3,500 REALTORS® responded to the October survey: October REALTORS® Confidence Index Survey

A variety of factors were reported as negatively affecting confidence: impacts of the government shutdown, increases in mortgage rates, tight housing inventories, and the impending increase in home flood insurance rates.

[1] To assess their confidence about current conditions, REALTORS® were asked: “How would you describe the market where you make most of your sales? Concerning their expectations for the next six months, they were asked “What are your expectations for the housing market over the next 6 months where you make most of your sales?”An index of 50 delineates “moderate” conditions and indicates a balance of respondents having “weak”(index=0) and “strong” (index=100) expectations. The index is not adjusted for seasonality effects.

Jed Smith, Managing Director, Quantitative Research

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.

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