April RCI highlights

REALTORS® Confidence Index Survey: April 2015 Survey Highlights

A monthly survey of  REALTORS®  about their transactions in April 2015 indicated a pickup in market activity and more widespread confidence compared to the situation in March  2015 and a year ago.  The April 2015 report is based on the responses of 2,012 REALTORS® about local market conditions in March.

The seasonal uptick in market activity in spring and summer, low 30-year fixed rates of below 4 percent, continued job growth, and recent measures to make credit more accessible and cheaper (e.g., lower FHA mortgage insurance, 3 percent downpayment for GSE-backed loans) appear to be having a positive market impact.

For the third month in a row, the REALTOR® Confidence Index-Six-Month Outlook was above 50 across all property types (single family townhomes, condominiums), indicating that the number of respondents who viewed the market as “strong” outnumbered those who viewed the market as “weak.” Inventory remained tight as indicated by the Seller Traffic Index which stayed below 50. With stronger demand and tight supply, homes sold realtively quickly, typically within  39 days. First-time homebuyers continued to account for 30 percent of existing home sales, while investors accounted for 14 percent. Given the decline in sales to investors, cash sales accounted for 24 percent of sales.

April RCI highlights

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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