July 2014 Realtor Confidence Index Results

Every month, REALTORS across the country are given an opportunity to give their impression of their local housing markets.  The National Association of REALTORS (NAR) puts this into a report.  I just received the July "sneak peek" and here is a brief summary.  I'll expand on it in the next week or so.

• REALTOR confidence has continued to moderate. Some areas are seeing better inventory, but overall, supply remains tight.
• Buyer traffic dropped slightly in July.
• Fewer REALTORS are reporting rising home prices.
• Most REALTORS expect home prices to raise modestly in the next 12 months. (Michigan expects 3%-5% increase)
• Properties typically sold within 48 days in July.
• First time buyers were 29 percent of sales. Most first time buyers also made down payments of 6% or less.
• Cash sales were 29% of total sales.
• Sales for investment purposes were 16% of all sales.  Second home buyers and relocation sales remain weak.
• Distressed sales (foreclosures and short sales) were only 9% of all sales and sold at an average of 20% discount.
• Demand for residential rentals remains strong with many areas reporting rising rent rates. In some markets, it is cheaper to pay for a mortgage than rent.

The housing market is more complicated than it would appear to many consumers. If you are planning to sell or purchase real estate, it pays to work with a full-time professional, both for the lending and the marketing/sales components.