Realtors remain confident in market’s future

WASHINGTON – Sept. 29, 2014 – Realtors' confidence about the single-family housing market over the next six months held mostly flat in August, but more Realtors view their local markets as "strong" rather than "weak," according to the latest Realtors Confidence Index, based on responses from about 3,300 members of the National Association of Realtors (NAR).

Realtors mostly expect modest home price increases in the coming 12 months – a median nationwide at 3.5 percent. Overall, Realtors in North Dakota and Texas reported the greatest confidence.

However, Realtors in Florida are more optimistic about price increases, along with their cohorts in Texas and Hawaii. In those three states, Realtors expect sales prices to rise 5 or 6 percent over the next year.

Still, overall market concerns remain, according to NAR.

Realtors expressed concern about borrowers' difficulties in obtaining a mortgage, as well as a weak job market in many areas – major deterrents to home buying. About 18 percent of Realtors had clients who could not obtain financing in August.

Other hurdles to closing in August were: the buyer and seller could not agree on the price (11 percent); the buyer lost a bidding competition (8 percent); and appraisal issues (4 percent).

Realtor confidence in the townhouse/duplex and condominium market remains sluggish as well. Respondents reported that the condo market still lags because of FHA financing and occupancy regulations.

Realtors again reported challenges from a lack of for-sale inventory, though it appears to be easing in some states, including Florida. Other states where tight inventory problems eased include: Arizona, California, Delaware, Georgia, Indiana, Idaho, Maryland, Maine, Michigan, Minnesota, North Carolina, Nevada, New York, Texas, Virginia and Wisconsin.

Nevertheless, NAR says that the overall supply of homes remained tight for "lower" and "middle-priced homes," mostly attributed to the fewer number of distressed properties and the strong price appreciation since 2012 that has made homes less affordable.