Despite increased foreclosure activity, local Realtors are confident in the real estate market, according to a new report from the Massachusetts Association of Realtors (MAR).
The group’s Realtor Market Index (RMI) and Realtor Price Index (RPI) continue to be up compared to the year before. While short sales and foreclosures continue to have a larger-than-normal presence in the market, the majority of Realtors who work with these types of sales reported no change in this part of their business compared to last year, according to the report.
"Increased buying and selling activity this spring continued to keep confidence up in June and it should carry on through the summer," said 2012 MAR President Trisha McCarthy, broker at Keller Williams Realty in Newburyport. "Recent news that the market has ‘hit bottom’ should also help keep the market moving in a positive direction."
In June, the Realtor Market Index was 59.3, which are up from the June 2011 score of 29.17. This is the second-highest point the index has reached since the association has been tracking the data and 11th straight month of year-over-year increases. 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.
The Realtor Price Index was 60.06 in June, which was up 57 percent from the June 2011 RPI of 38.30. This is the second highest point reached on the RPI scale since the data has been tracked and first time that the RPI has reached the 60-point mark in two consecutive months.
Last month, Realtor members were asked whether short sales and foreclosures were currently part of their business. Of those who answered yes, 17 percent responded that compared to a year ago the amount of their short sale business was either somewhat less (14 percent) or significantly less (3 percent). Forty-eight percent of respondents reported no change from last year, while 35 percent responded that their business was somewhat greater (32 percent) or significantly greater (3 percent) compared to last year.
