Information is knowledge. Whether you’re trying to discover the ins and outs of your favorite college football team or see where the latest housing trends are going, taking a deep dive into the data will help you gain a better understanding of where we were, where we are and where we’re heading.
During the National Association of Realtors’ fall conference in Orlando last month, I was reminded of a valuable tool that helps measure data from Realtors across the nation in an effort to see where the housing market is going: the Realtors Confidence Index.
The RCI is a key indicator of housing market strength based on a monthly survey sent to over 50,000 real estate practitioners.
It gathers information on three topics: local real estate market conditions, characteristics of buyers and sellers, and issues affecting homeownership and real estate transactions.
The report contains graphs and charts to depict trends in the industry.
Using this data, Realtors can learn how long properties are typically on the market, if home prices are remaining constant or rising, and what type of buyers are accounting for home sales, they can then modify how they do business.
NAR Chief Economist Dr. Lawrence Yun mentioned this study from October and provided some interesting insights.
For example, 6% of Realtors expect a year-over-year increase in buyer traffic in the next three months, down from 7% in September 2022 and from 27% in October 2021.
Also, 7% percent of respondents expect a year-over-year increase in seller traffic in the next three months, which is comparable to 7% in September 2022 and down from 20% in October 2021.
So while the market might be correcting itself, many Realtors are seeing signs of increased interest in homebuying in the next few months.
Yun also pointed out that with supply still limited relative to demand, the market continues to move at a fast pace. For example, 24% percent of homes sold above list price, down from 28% a month ago and 42% a year ago. And 64% of respondents reported properties sold in less than one month, which was down from 70% a month ago and 82% in October 2021.
Homes listed in the multiple listing service received an average of 2.4 offers, which was nearly flat from September 2022, when it was 2.5 and down from 3.7 in October 2021.
Also, due to the lack of housing inventory, the pace of the market and the use of technology, 7% of buyers purchased a home based only on a virtual tour, showing, or open house without physically seeing the home. This is nearly unchanged from one month and one year ago.
It’s important to note that the RCI gathers information from Realtors about local market conditions based on their client interactions and the characteristics of their most recent sales.
So, while the market is shifting, it’s clear that it’s not stopping, as some people have feared. And if mortgage interest rates continue to drop, many folks are expected to jump back into the housing market after being put on hold for a short while.
Navigating this data takes an expert, which is why you should consult a Realtor for all your purchasing needs. Realtors work tirelessly with clients every day to make sure they’re getting the most out of their most valuable investment. That’s Who We R.
Founded in 1912, Greater Chattanooga Realtors is the voice for real estate in Greater Chattanooga. A regional organization with more than 2,700 members, Greater Chattanooga Realtors serves Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade and Walker counties in northwest Georgia. The association is one of approximately 1,100 local associations and boards of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors owns and operates a Multiple Listing Service that is one of approximately 600 MLSs in the country and services more than 3,000 MLS users. Local association membership consists of Realtors servicing the Greater Chattanooga area and specializing in a variety of disciplines, including appraisal, commercial, industrial, land, multifamily, property management and residential. Affiliate members who represent related industries work alongside these Realtors, including mortgage lenders, home inspectors, title and closing services, pest inspection and control services and insurance providers.