The NATIONAL ASSOCIATION OF REALTORS® RESEARCH DIVISION recently released their May 2010 Regional survey and the results are interesting....
Monthly surveys are sent out to agents that will determine the national Realtor Confidence Index. The responses received from the regional surveys are then tabulated on a quarterly basis, and provide the NAR with the data that helps to predict future trends in the regional housing market. The Realtors® Confidence Index, based on information received from a random survey of Realtors, is a tool the NAR uses to measure the strength of the current housing market. It also paints a picture of the expectations agents have about the future market. According to the report, "The questions are designed to capture the effects of existing economic conditions and trends on the real estate business. This index provides Realtors® a snapshot of the performance, sentiments and expectations of their counterparts."
The participants are asked to respond each month to an array of questions pertaining to the current and expected demand for homes, price trends, and prevailing economic conditions. The Confidence Index is then compiled using the quantified answers from the survey. "Responses are assigned weights of 0, 50 or 100. A response of "strong" gets 100 points, while "moderate" is given 50 points, and "weak" is assigned 0 points." The average score for each question is used to create the index, thus reflecting the respondents' confidence level for the current period and their future expectations, compared with the previous month, as well as the same month last year. The sample size for the monthly reports varies depending upon the amount of responses, but the "sample is always well in excess of the number of responses needed for a plus or minus 1 percent precision."
According to the Regional 5 Survey the overall results for realtors in Georgia are as follows:
"Buyers are looking, but it is hard to get offers accepted because buyers have unrealistic ideas of what the sellers should give them. The media is fueling the idea still that they can get anything."- Georgia
"Fear of losing jobs/lay-offs. Mortgage requirements. Bubble still hasn't bottomed. More foreclosures to hit market soon. Economy still weak. Fear of higher taxes (property & income as well as higher utility costs etc.) Over all, big government spending and uneasiness about the future." - Georgia
"The issue I have had is financing for condos. FHA will only do certain complexes and conventional requires 20% down, because no one wants to do PMI on a condo." - Georgia
Now, bear in mind the results provided by the Realtor® survey is simply a matter of Realtor® confidence and not actual findings. This report does not purport to predict current market trends. This information was taken directly from the National Association of Realtor® research division. For more information on the results, visit http://www.realtor.org.
