traffic

REALTORS® Reported Slower Buyer and Seller Traffic in November 2015

In the monthly REALTORS® Confidence Index Survey, the National Association of REALTORS® asks members “How would you describe the past month’s housing market in the neighborhood or area where you make most of your sales?”

The responses are aggregated into a REALTORS® Buyer Traffic Index, with a value of 50 indicating an equal number of “strong” and “weak” responses. The November 2015 index eased down to 50 compared to its level of 52 in October 2015, but was higher compared to last year’s index of 43, according to the November 2015 REALTORS® Confidence Index Survey Report (http://www.realtor.org/reports/realtors-confidence-index).[1]

Sustained job creation, the low interest rate environment, and measures to reduce the cost of borrowing and make credit more accessible to responsible borrowers continue to bolster the housing market recovery. However, the implementation of the TILA/RESPA Integrated Disclosure (TRID) regulations on October 3, 2015 appears to be delaying the settlement of contracts and impacting sales. About 47 percent of respondents reported longer closing times compared to a year ago, up from 37 percent in the October 2015 survey.

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[1] The index for each state is based on data for the last three months to increase the observations for each state. Small states such as AK, ND, SD, MT, VT, WY, WV, DE, and D.C., may have less than 30 observations. Respondents were asked “How do you rate the past month’s buyer traffic in the neighborhood(s) or area(s) where you make most of your sales?” The responses were “Strong (100)”, “Moderate (50),” and “Weak (0).” Respondents rated conditions or expectations as “Strong (100)”, “Moderate (50)”, and “Weak (0).” The responses are compiled into a diffusion index. Values 25 and lower are considered “very weak”, values greater than 25 to 49 are considered “weak”, a value of 50 is considered “moderate”, values greater than 50 to 75 are considered “strong”, and values greater than 76 are considered “very strong”.