The Massachusetts Association of Realtors (MAR) reported today that the March Realtor Market Confidence Index (RMCI) declined for the fifth straight month compared with the same time last year.

"The continued lack of inventory of homes for sale is pushing the Price Confidence Index and the Market Confidence Index in opposite directions," 2014 MAR President Peter Ruffini, regional vice president at Jack Conway & Co., said in a statement. "Sellers feel confident because of increasing prices, but their confidence diminishes when they transition into buyers faced with limited inventory to choose from."

In March 2014, the RMCI was 69.5, which was down eight percent from the March 2013 score of 75.52. On a month-to-month basis, the March RMCI was up 11 percent from the 62.79 score in February 2014. This is the second straight month that the RMCI has gone up over the 60-point mark since October 2013. Measured on a 100-point scale, a score of 50 is the midpoint between a "strong" (100 points) and a "weak" (0 points) market condition.   

Tight inventory, however, is continuing to contribute to rising prices. The Realtor Price Confidence Index was 79.69 in March, up one percent from the March 2013 RPCI of 78.74. This is the 26th straight month of year-over-year increases and the 13th straight month over the 70-point mark. On a month-to-month basis, the RPCI was down one percent from the February 2014 RPCI of 80.81.

This month, MAR also polled its members on the level of client demand for homes that are either accessible and/or designed for aging in place (i.e. single-floor living). Of those members who responded to the survey, half have seen an increase (42.5 percent) or a significant increase (7.5 percent) in demand for these types of properties. Forty-seven percent of Realtors who responded reported they have seen no change in demand, while three percent have seen a decrease or a significant decrease in demand for this type of housing.