In September, Massachusetts Realtors were more confident in the market compared to last year, but far less confident compared to August, according to the Realtor Market Index (RMI), compiled by the Massachusetts Association of Realtors.
In September the RMI stood at 21.63, up 11.58 percent from the September 2010 score of 19.39. This is the second straight monthly year-over-year increase, the first consecutive increase since April-May 2010. On a month-to-month basis, the September RMI was down 24.28 percent from the 28.57 score in August.
Measured on a 100-point scale, a score of 50 on the index is the midpoint between a "strong" (100 points) and a "weak" (0 points) market condition, according to a statement.
The year-over-year optimism did not translate into confidence in prices, either, according to MAR’s Realtor Price Index (RPI).
In September, the RPI Stood at 37.38, down 12.44 percent from the September 2010 RPI of 42.69. This is the fourth straight month of year-over-year decreases in the RPI. On a month-to-month basis, the RPI was down 6.35 percent from August 2011’s score of 39.93.
MAR mebers were asked in September what type of impact they felt the return to lower Federal Housing Administration (FHA) and GSE (Fannie Mae and Freddie Mac) loan limits would have on the Massachusetts real estate market. Seventeen percent of respondents felt the return to lower loan limits would have a positive impact, and 39 percent felt there would be a neutral impact. A combined 44 percent felt the lower limits would have either a negative impact (34 percent) or a significant negative impact (10 percent). None of the respondents thought these lower loan limits would have a significant positive impact, the association said.
"For the second month in a row Realtor-member confidence increased over the same time last year; which is a good thing," 2011 MAR President Laurie Cadigan, broker-owner of Barrett & Co. in Concord, said in a statement. "While members are split on what impact a return to the lower FHA/GSE loan limits will have on the Massachusetts real estate market, we believe more focus is needed on housing in Washington DC to help the market and economy improve."
The RMI and RPI are based on monthly responses from a random sampling of MAR members on the state of the housing market. the survey asks members two basic questions pertaining to the real estate business in their market area in Massachusetts: "How would you describe the current housing market?" and "What are your expectations of home prices over the next year?"
In addition to these standard questions, the survey each month includes one wildcard question that changes each month and is based on an industry hot topic.
