REALTORS® Reported Strong Demand But Weak Supply in September 2015

Local conditions vary, but the number of REALTOR® respondents who reported “strong” buyer traffic outnumbered those who reported “weak” traffic in September 2015, according to the September 2015 REALTORS® Confidence Index Survey Report.[1] The REALTORS® Buyer Traffic Index registered at 53 (60 in August 2015; 44 in September 2014). Buyer traffic was stronger compared to a year ago, but was slower after the strong spring and summer months, as is typically the case.

Inventory remained tight, with more respondents reporting “weak” than “strong” traffic from prospective sellers. The REALTORS® Seller Traffic Index dipped to 41 (45 in August 2015 and 39 in September 2014). While the construction of new privately owned housing units has been improving, reaching 1.2 million units in the second quarter of 2015, roughly 40 percent of recent new construction has been multifamily structures which are typically for rental occupancy. Historically, multifamily structures accounted for only 20 percent of new construction, so the availability of single-units for purchase among recently constructed properties is lower than was historically normal. REALTORS® reported low inventory of properties in the lower price range and for those that are move-in ready.

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[1] Respondents were asked “How do you rate the past month’s traffic in the neighborhood(s) or area(s) where you make most of your sales?” for Prospective Buyers and Prospective Sellers.

Danielle Hale, Director of Housing Statistics

As a Research Economist at NAR, Danielle studies tax issues, the wealth impact of home ownership, and different measures of home prices.

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