May 14, 2010

New Cause for Confidence in the Real Estate Market

The US real estate market appears to be improving, at least according to one leading indicator. The April survey by Real Estate Confidence Index (RECI) suggests both improved market conditions and more optimism among real estate brokers and agents. The RECI, just released by Point2 Technologies, rose for the second month in a row.

For April 2010, the RECI recorded a 5.82 reading, that's up from 5.77 in March. The RECI scale measures from 1 to 10, one being "bad" and 10 being "good."

The positive response from survey respondents was fueled by improved current market conditions, with increased sales activity in the low- to mid-price range properties.

Many of the RECI survey participants pointed to the government tax credit, which expired on April 30, as the key reason for increased sales. Record-low mortgage rates didn't hurt the real estate market either. More agents in more states reported multiple offer and bidding war situations than the month before. Some sales professionals also cited increased investor activity, possibly due to the high rate of foreclosures, which create bargain-basement home prices and increased home sales.

Tags: mortgage rates, real estate market, tax credits

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