Jed Smith and Gay Cororaton
REALTORS® Confidence Index (RCI)
Report provides monthly informationpertaining to expectations about overall market conditions, buyer/seller traffic, price, buyerprofiles, and issues affecting real estate. Collection of this data began in January 2008 tosupplement information on existing home sales trends and provide timely feedback fromREALTORS® on the real estate market (
see the Data Appendix of this Report for the historicalseries
).The December edition is based on responses of 2,760 REALTORS® to a surveyconducted during December 27, 2012 through January 4, 2013.
All real estate is local:conditions in specific markets may vary from the overall national trends presented in this report.
Executive Summary--Current Conditions: Major Indicators
The year 2012 ended on a high notewith the Current ConditionsConfidence Index increasing for allproperty types. The index for singlefamily homes rose to 56 from 32 ayear ago, indicating a shift inexpectations from
An index of 50delineates moderate conditions orexpectations. The index fortownhouses ended at 39 compared to19 last year, while the index forcondominiums was at 31 compared to14 last year.
REALTORS® generally reported brisker sales, rising home prices, and shorter days onthe market. However, the market recovery continued to be held back by low inventoryand a tight and drawn out underwriting process, especially for shortsales. Appraisalissues, the modest pace of economic recovery and job growth, and the potential adverseimpact
of ‘fiscal cliff” measures and
regulations on mortgage lending (e.g, QualifiedMortgage rules) were major concerns. REALTORS®
also reported reduced activity inthe areas affected by Hurricane Sandy and concerns over the potential dampening effectof higher flood insurance rates (
REALTORS® comments in Section IV of this Report).
The survey is sent to approximately 50,000 REALTORS®.
The REALTORS® Confidence Index onCurrent Conditions increased across all property types. The index for single family homes ended at 56 in December,up from
32. The indexes for townhouses and condominiums remainbelow 50 but are up from last year.