The assessment of REALTORS® about their local real estate markets was broadly unchanged in August 2014 compared to July 2014, according to data from the August REALTORS® Confidence Index Survey.
In the single family market, the REALTORS® Confidence Index – Current Conditions for single family homes stayed at 60, which indicates that there were more respondents who viewed their markets as “strong” compared to those who viewed them as “weak.” [1] There were reports that in some areas market activity fell in August, which respondents attributed to seasonal factors such as school openings. Inventory was reported to be improving although still generally tight, especially for “affordable” homes. Obtaining credit was the main concern reported by REALTORS®.
The indexes for townhouses/duplexes and condominiums continued to be generally weak with the indexes below 50. REALTORS® have reported that the condominium market has not recovered as strongly as single family homes because of FHA financing and occupancy regulations.
[1] An index of 50 delineates “moderate” conditions and indicates a balance of respondents having “weak”(index=0) and “strong” (index=100) expectations or all respondents having moderate (=50) expectations. The index is calculated as a weighted average using the share of respondents for each index as weights. The index is not adjusted for seasonality effects.