WASHINGTON – March 24, 2014 – According to the just-released National Association of Realtors®’ (NAR) Realtors Confidence Index, members expect home prices to continue to rise over the next 12 months, but they expect them to do so at a moderate pace given tight credit conditions and lower home affordability.
The Realtors Confidence Index is a monthly survey distributed to more than 50,000 real estate practitioners. It gauges their expectations about home sales, prices and market conditions. Overall, Realtors expect a median price increase of 3.9 percent over the next 12 months.
Florida is one of four states where practitioners predict the biggest increases – 5 to 7 percent – along with California, Alaska and Hawaii. Tight inventories have helped to lift home values in these areas, according to the survey.
“In states with booming economies like Washington, North Dakota, Texas, Michigan, and the D.C.-metro area, the expected price increase is about 3 to 5 percent,” according to the report.
Real estate professionals also expressed several concerns over the housing market holding back some buyers, particularly due to “unreasonably” tight credit conditions.
“Access to credit was often cited as a deterrent to home buying,” the report says. “About 13 percent of Realtors who did not close a sale in February reported having clients who could not obtain financing.” In those cases, about 6 percent of the professionals said their buyer gave up, while 7 percent said their buyer continued to seek new or other financing.
Other transaction hang-ups were lack of agreement on a price (11 percent); buyer losing a home to competition (10 percent); and appraisal issues (3 percent).
Source: Realtor Magazine Daily News
© 2014 Florida Realtors®
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Sarasota Area Real Estate Specialist