WALTHAM, Mass. – November 21, 2013 – The Massachusetts Association of REALTORS® (MAR) reported today that the October REALTOR® Market Confidence Index (RMCI) and the October REALTOR® Price Confidence Index (RPCI) were both up again compared to the same month in 2012. The results of the October “Hot Topic” question show that the Government shutdown in October impacted a significant number of the REALTORS® who responded.
“Overall, REALTORS® continued to feel confident about the market and home prices because buyer demand remained strong in October,” said 2013 MAR President Kimberly Allard-Moccia, broker-owner of Century21 Professionals in Braintree. “However, when it came to describing the impact of the government shutdown on their own businesses, a big percentage of REALTORS® who responded did see a drop while the government was closed.”
In October 2013, the REALTOR® Market Confidence Index was 62.02, which was up six percent from the October 2012 score of 58.38. This is the 27th straight month of year-over-year increases and the 10th straight month over the 60-point mark. On a month-to-month basis, the October RMCI was down one percent from the 62.61 score in September 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.
The REALTOR® Price Confidence Index was 71.51 in October, up four percent from the October 2012 RPCI of 68.68. This is the 21st straight month of year-over-year increases and the eighth straight month over the 70-point mark. On a month-to-month basis, the RPCI was up two percent from the September 2013 RPCI of 70.27.
The monthly “Hot Topic” question asked REALTOR®-members to assess the impact of the Government shutdown in October on their real estate business. While more than half (56%) of the respondents indicated that the Government shutdown had a neutral impact on their real estate businesses, 44 percent reported there was either a significant negative impact (6.2%) or a negative impact (38%) on their real estate business. None of the respondents answered that the Government shutdown had either positive impact or a significant positive impact.
About the REALTOR® Index Methodology:
The Massachusetts REALTOR® Market Confidence Index (RMCI) and Price Confidence Index (RPCI) are based on monthly responses from a random sampling of Massachusetts Association of REALTORS® members on the state of the housing market. More specifically, the survey asks members two basic questions pertaining to the real estate business in their market area in Massachusetts.
1. How would you describe the current housing market?
2. 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.
The RMCI is calculated in the following way. Respondents indicate whether conditions are, or are expected to be “strong” (100 points), “moderate” (50 points), and “weak” (0 points). The results are the average score for each question. A score of 50 is the threshold between a “strong” and a “weak” condition. Similarly, the question about home prices over the next year (REALTOR® Price Confidence Index) is calculated using five categories: “Rise 0-5%” (75 points), “Rise 5%+” (100 points), “Level” (50 points), “Fall 0-5%” (25 points), and “Fall >5%” (0 points).
About the Massachusetts Association of REALTORS®:
Organized in 1924, the Massachusetts Association of REALTORS® is a professional trade organization with more than 19,000 members. The term REALTOR® is registered as the exclusive designation of members of the National Association of REALTORS® who subscribe to a strict code of ethics and enjoy continuing education programs.
Editors and reporters: Please note that the term Realtor is properly spelled with an initial capital “R”, per the Associated Press Stylebook.