By Selma Hepp, Ph.D., Senior Economist
California Association of Realtors, Research and Economics
As the housing market shows signs of improvement, a looming question keeps repeating: What is the size of pent-up demand? Answering that question is not easy. It requires some counterfactual assumptions, such as “what would be if it wasn’t this?” To answer the question, however, we could look at some trends that persisted prior to the recession and project them forward. Housing demand, among other things, depends on household formation. New households result from adult children leaving parents’ households, singles or families leaving shared housing arrangements and creating their own. As suggested by other research, slowing of household formation has been concerning. While, household formations generally slow during recessionary periods, this recession has created particularly hard situation for new household formation. The situation is especially acute among the younger generation leaving colleges who have, instead of starting their own households, moved back in with their parents.
July 16-31st, 2012
The Research Department is proud to provide this offer as part of the Member Value Plus (MVP) program, a rewards program where members can take action on a new offer every two weeks, beginning the 1st and 16th of the month. Members are rewarded each time they complete an action specified by NAR. Visit REALTOR.org/MVP for details.
Your Action: Fill Out a Brief Survey
In continuing our efforts to know our members and their businesses better, NAR research hopes you will complete a short survey that serves as an extension of our monthly REALTORS® Confidence Index Survey and annual Member Profile.
The survey contains a few short questions relating to your business activity and what you see occurring in the marketplace and should take only a few minutes to fill out. In return, you will receive a promotional code to receive the newly released 2012 NAR Member Profile-Download from the REALTOR.org/Store FREE! The results of the survey will be posted on the Research page on REALTOR.org upon survey conclusion.
Only surveys submitted between July 16 and July 31, 2012 will be eligible for this offer. Only U.S. Members of the NATIONAL ASSOCIATION OF REALTORS® are eligible to receive this offer. You must have a valid NRDS ID number and e-mail address to participate.
Your Reward: The 2012 NAR Member Profile (Download)
Who are REALTORS®? Economic, demographic, education, tenure, agency relationship and compensation of REALTORS® are broken down. In addition, this report takes an in-depth look at office affiliation, type of firm, as well as the use of the Internet and technology. This unique tool provides the answers in a user-friendly format, designed to allow easy comparisons with previous studies, using a mix of charts, graphs and tables.
You have until August 31st, 2012 to claim your Reward in the REALTOR.org/Store. You will receive a promotional code to utilize in the Store to receive your reward via e-mail within 48 hours.n in-depth look at office affiliation, type of firm, as well as the use of the Internet and technology. This unique tool provides the answers in a user-friendly format, designed to allow easy comparisons with previous studies, using a mix of charts, graphs and tables.
Valid July 16-31st, 2012
By Gay Cororaton
The May Realtors® Confidence Index reports that the percentage of cash sales declined to 28 percent in May, from 29 percent in April for residential properties. The high preponderance of all-cash sales appears to be due to a number of factors: unrealistically high loan underwriting standards, a significant level of investor participation in the market, and sales of properties as second homes.