REALTOR® confidence over current housing conditions and their six-month outlook for single-family, townhome, and condo properties all showed a slight dip last month – indicative of a slowing housing market, according to the July 2015 REALTOR® Confidence Index, a survey of nearly 3,000 practitioners about the state of housing. Nevertheless, the index remains well-above levels from last year.
The index that measures buyer traffic slid to 62 in July while seller traffic remained below 50 due to a tight supply of homes for-sale nationwide. Any confidence index below 50 indicates that more respondents view conditions as “weak” than “strong.” Properties in July also were staying on the market longer at a median of 42 days across the country.
“REALTOR® respondents expressed concern that the steep pace of price appreciation is eroding affordability,” according to the REALTOR® Confidence report. “Respondents also expressed concern about the possible adverse effect on market transactions and closing when the new disclosure regulations under TILA-RESPA Integrated Disclosure (TRID) take effect on Oct. 3.” About 25 percent of REALTORS® reported that they or their office have not made any effort or don’t know of any efforts to deal with the impending changes from the new disclosure regulations.
REALTOR® respondents also cited that the limited number of homes for-sale was another issue weighing down the market’s momentum. According to the report, demand continues to outpace supply in states such as California, Washington, Oregon, Nevada, Colorado, Massachusetts, Florida. On the other hand, supply conditions are showing some improvement in Texas, Utah, North Dakota, South Dakota, Montana, Wyoming, and Utah.